Legal Question in Real Estate Law in New Hampshire

Re: What is sellers recourse?

Law varies from state to state, so I'll answer as if you were in Mass., the only law I know.

P & S agreements are binding, at least upon the party who signed it. Getting one of the owner's signatures, however, probably isn't enough to allow them to force the sale to go through as is normally a buyer's option and legal right when a seller welches on a deal. (It's called specific performance.)

He could be accused of fraud, and if the other party could show that you-all backed out because you got a better deal from someone else, you'd be liable to the first party for the difference at least. That's a measure of damages. But that didn't happen.

So, there are no established contract breach damages, your son didn't have the authority to bind the sale of the house -- which they are charged with knowing anyway since the deed is public record!, by the way!!! -- and thus specific performance is unlikely, ... I think his offer to pay back deposit PLUS out of pocket expenses is reasonable.

However, there is another factor that makes a P & S more binding: did YOU, dad, KNOW they were doing the house inspections when they did? That could be considered reliance and if you knew at that time and did nothing to prevent them or object, it could help bind the contract a little bit.

I think you want to stress the understanding that the deal was not only to make enough time to find a place, but to back out if he couldn't find one. That appears not have made it into the P & S as it should have and it was a major misunderstanding and he really screwed up if that's what he thought the deal was!

I don't know what claims will be brought against him, but making the deal go through as stated in the P & S is probably not an option without your signature.

(You can reply directly to me, at [email protected] .)