Legal Question in Real Estate Law in Maryland

Are you obligated to sell your home if you have a written agreement?

I entered into a written agreement with a prospective buyer to sell my home for a specific price. The wording of the agreement included the price, the closing contribution and amount of deposit. The agreement did not state when the home would sell. I received a document one month later from the prospective buyers bank requesting information about the mortgage company. I did not sign or return any documentation back to the buyers bank. I called both the prospective buyer and their bank to inform them that I would not be selling the home after all. The prospective buyer has since contacted me and told me that I am obligated to sell my home to him and if not, he will sue me. I received a poorly written letter from the attorney's representing him today and they informed me that I have 5 days to contact the prospective buyer to set a date for settlement. Does this buyer have a case? We never signed any bank contracts although he did have the home appraised. I do not want to sell my home, can the Court require me to as his lawyer is indicating?


Asked on 4/02/04, 8:20 pm

1 Answer from Attorneys
Robert Sher Wagshal and Sher

Re: Are you obligated to sell your home if you have a written agreement?

When you signed the contract to sell the house, you became legally obligated to do so. The fact that there was not a settlement deadline in the contract was poor contract drafting, but does not allow you to avoid your legal obligation, as long as the buyer has fulfilled all of his contract obligations. He will sue you for specific performance and get a court order requiring you to sign a deed. You may also be liable for any damages he sustains in having to take you to court, and if the contract provides, for his legal fees and expenses.

Contracts are legally binding documents, not mere expressions of present interest in doing something subject to either party changing his mind. If the shoe were on the other foot and the buyer were the one trying to back out, you could likewise legally force him to complete the transaction, or you could sue him for damages.

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Answered on 4/05/04, 10:42 am


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