Legal Question in Real Estate Law in New Mexico
Canceling an agreement
The seller wants to sue my client, an offer was submitted and accepted but the earnest money was not given, the money situation has chaged and my client cannot buy the house. Can he still be held to the contract? The owners agent told me to tell my client that he better come up with compensation or my clients will be taken to court.
1 Answer from Attorneys
Re: Canceling an agreement
An offer to purchase real estate, timely accepted by the seller, is binding upon both parties according to its terms. The failure of the buyer to comply with the condition of depositing 'earnest money' is simply the breach of a contract condition, and will not void the agreement nor release the buyer from the contract. It sounds to me as though the two agents should sit down and settle the matter, as litigation seldom results in a satisfactory outcome to either side, is expensive, and may absorb funds which could otherwise be used in settlement.
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