Legal Question in Real Estate Law in Illinois

Re: Breaking a contract

Whoops! Sounds like breach of contract times two to me. No one can predict the exact amount of damages in these things as it is typical for a court to award "reasonable attorneys fees"...YOU NEED A LAWYER. GET ONE NOW!!

Re: Breaking a contract

Lets take this one step at a time.

The sale of her house. She may be able to back out but it will depend on what the buyers want and what the contract says. The typical [emphises here is typical] contract give the buyer the option in the event a seller's default to either keep the earnest money or sue for specific preformance to MAKE the your mother in law sell the property. If buyer decides to keep the earnest money your mother in law may also owe a brokerage commission if a real estate broker was involved. If she didn't use an attorney before she signed the contract she should get one now for sure.

Purchase of new home. If her offer purchase has not been accepted by the sellers she can withdraw it. The mortgage commitment is a separate transaction and she can probably cancel the mortgage commitment with no cost. This is certainly the case if it is only a preapproval.

Re: Breaking a contract

I agree with the other attorney's statement. The first step is to examine the real estate contract as well as her real estate broker's contract (if you have one). Breaching a contract can have serious consequences and open your mother-in-law to liability. She should consult with an attorney to discuss her options. I may be reached at 312-236-9906.

Re: Breaking a contract

You must look to the contracts and if she wishes to break out of the purchase: if it has not been accepted yet then she may pull out. This is why an attorney is vital in real estate actions.