Legal Question in Real Estate Law in Nebraska

Re: Breaking a Purchase Agreement

Remember, BBS answers are general descriptions of the law, and not specific advice that you should rely on in making important decisions.

With that in mind, there are a number of ways this could turn out. Most of them depend not on fine points of the law, but instead depend on what you, your boyfriend and the owner choose to do. If you signed the purchase agreement, you are bound to it until it is performed [paid in full] or until you are released from the obligation by the owner. If your boyfriend wants to keep the acreage, and can make the payments, then perhaps you can convince the owner to execute an addendum to the contract, removing you from the agreement. You would not have any interest in the property and would not be obligated to make future payments. If you and your boyfriend are "jointly and severally liable" on the contract, the owner can collect from both of you, or either of you, wherever he can get the money. You would be stuck trying to collect from your ex boyfriend, if you were forced to pay off the loan. This is one reason the owner may not want to let you off the hook. Chasing two people for money owed him is easier than chasing one, and it increases his odds of collecting. If he thinks that your ex could refinance the loan on his own, then you may be able to get out, because the new lender wouldn't want you to cloud up the title.

You need to take a good hard look at whether your ex can refinance without you, whether the owner would release you, and in exchange for what, and whether you could sell the property and divide your interests after paying off the loan. You should consult with an attorney and your banker after talking to your boyfriend, and then the owner.

Good luck.