Legal Question in Real Estate Law in Pennsylvania
Real Estate Contract: Buyer puts conditions on sale and backs out.
We were approached by a couple who wanted to purchase a home we were remodeling (was not on the market at the time). We were willing to sell and we all agreed on a price.
The buyers made their purchase contingent upon several conditions involving changes in the house: they wanted a different bathtub installed; bathroom fixtures changed from brass to chrome, lights changed, etc. We agreed to make these changes.
A contract was drawn and we all signed. However, I did not realize they never gave the $1000 deposit to the closing agent.
We went ahead and made the changes, incurring direct out-of-pocket costs of more than $500.
Just before closing (after their loan was approved), they informed us that he had lost his job and while they ''could'' complete the transaction, they chose not to. At this time, he said he'd send the $1000 in ''liquidated damages'' as specified in the contract.
They haven't paid and our closing agent says that since he lost his job, he's not held to the contract (which stated they'd receive a refund if they were unable to get financing). We have asked them to cover our out-of-pocket expenses made on their behalf; they agreed to do so, but are now refusing. Do we have any legal recourse?
Thank you.
1 Answer from Attorneys
Re: Real Estate Contract: Buyer puts conditions on sale and backs out.
This all comes down to the Agreement of Sale that you drafted between parties. From what you stated it seems that the purchasers breached and therefore are responsible both for your out of pocket expenses as well as the $1,000.00 handmoney. You need to retain legal counsel as soon as possible in order to protect your interests in this matter.
My office offers flat rate pricing and free consultations, for additional information please visit my firm's website at www.AlleghenyAttorneys.com or by calling my office at 412.731.0865.
Sincerely,
Marc V. Taiani, Esquire
AAAL - Allegheny Attorneys At Law
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