Legal Question in Real Estate Law in Michigan
Recently my wife and I decided to purchase a home in Western Michigan. We found a house, put in an offer which was accepted by the seller and opened escrow with earnest money. Through our oversight we did not put it contingent upon the house appraising for the purchase price. The lending institution appraised the house for less than the agreed price. The sellers and their agent disputed the appraisal and paid for a second one which also appraised for less than the agreed price. We now want to back out of the purchase. I understand that we will probably lose our earnest money, however the seller�s agent is threatening legal action to force us to buy. Can they force us to buy at a loss?
2 Answers from Attorneys
I would disagree with you on the loss of earnest money based on apprasial. If the apprasial is less than the mortgage amount, you cannot get the loan and your offer should be contingent on mortgage approval and financing. If not, I would agree with you. They cannot sue you for specific performance of the contract. Just read the contract, it should call for loss of EMD only. Good luck. www.kliszlaw.com Tim Klisz
The contract would have all of the information that you need to know. Read it carefully or hire an attorney to do it for you. http://www.wolverinelaw.com
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
