Legal Question in Real Estate Law in Illinois

Re: Real estate

Depends on why you are "breaking a contract." If, for example, there is a financing contigency, and you cannot get financing, you will probably get your earnest money back. If you just decided you do not want the house, the seller might be able to keep your earnest money and/or sue you for any damages suffered by your failure to purchase the property, which can sometimes end up being a lot of money. You should discuss this with your attorney. If you have not yet hired an attorney, you need to do so immediately.

Re: Real estate

Breaking a contract is aterm of art.

If there are escape clauses within the contract and you choose not to go forward and have facts that fit the escape clauses, you really are not breaking the contract, for example if there was a finacnicing contingency and you complied with the time restrictions and could nto obtian financing and therefore can not close; that is not breaking a contract. Another example is if certain repairs were to be done and were not.

If you are merely deciding that you dont want to go ahead, the seller can sue you for his or her damages that resulted from your breach. For example, insurance and tax expense beyond the lcosing date, the difference between the price they contracted with you and what they actually sell it for.