Legal Question in Real Estate Law in Maryland
Voiding Sale Contract or Contract Cancellation
I went in to a House Sale contract with a buyer. The buyer did not put the Acceptance date on the contract although buyer and seller signed the contract. Seller (me) did put the date on the contract.
1. Buyer asked for some contigencies that were not acceptable by the seller as they were never given in writing to the seller, but buyer still wants to enforce the contigencies. The settlement date as per on the contract has passed and seller wants to get out of the contract since there are other buyer who are willing to buy the property as is.
2. Buyer did not show the seller written financial approval as per contract till this date. That allows the seller to get out of the contract.
Being a seller I have informed the buyer in writing, three days prior to settlement date, that due to the buyer's demands, the situation is not acceptable and contract is null and void.
Question: How can I get out of the contact CLEAN so that I can go into next contract. Buyer is insisting that they have the legal right to still enforce the contract (Probably because the date was not written on the original contract acceptance column. Although the settlement date per contract has passed and buyer did not informed the seller about the closing)
2 Answers from Attorneys
Re: Voiding Sale Contract or Contract Cancellation
The fact that the buyer didn't write the "date of acceptance" on the contract is of no legal signicance since both parties signed it. The date of last signature will determine time periods as far as ongoing contract obligations are concerned.
If the contract contained a financing contingency and required the buyer to notify you of financing approval by a certain date and he failed to meet this deadline, he's violated the contingency provision and can no longer rely on it. Any post-signing efforts by him to change the contract by adding additional contingencies are meaningless since you didn't agree to them.
Technically you could forfeit the buyer's deposit or avail yourself of other default remedies contained in the contract, and go ahead with a new buyer. However, this might provoke the buyer into filing a suit for specific performance, which would tie up the property. I suggest you retain an attorney to attempt to negotiate a mutual release which would involve you returning the buyer's deposit and his agreement to walk away.
Robert Sher
301 986-4555
Re: Voiding Sale Contract or Contract Cancellation
From the sound of it, this alleged contract was not prepared by an attorney. Without attending to appropriate matters in the contract, it may be void, or voidable at the discretion of the affected party.
Based on the transaction, it appears that a contract may likely have formed. Whether the language of the writing sustains the "deal" is another matter. Recovery of any damages is speculative at best based on your situation as described.
Contact an attorney to orderly pursue sale of the property. Contact me at (410) 799-9002 or by return e-mail.
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