Legal Question in Real Estate Law in Texas

Home seller unable to perform on contract

I entered into a contract to purchase a home. I was represented in the transaction by a buyer's agent. I was ready to close by the closing date, but about 2 days before we got word from the seller's agent that they would not be able to meet terms of the contract. The seller was looking to sell the home for just enough to pay off the loan, and due to some math error by their agent, they would have had to come up with $17k. The sellers are over 90 days past due on their mortgage, and one of them is out of work. They sent a 'release of earnest money' for to me, but I have not signed it yet as I would still like to buy the property. I talked to a lawyer about filing suit against the sellers, but I know the sellers don't have the cash to complete the sale, so I would be stuck with lawyers fees and just a lien on the house. The agents are now trying to work out a 'short sale' to get it from the bank. I am out about $1400 due to non-refundable deposit with my lender and the home inspection. If the sale is not able to go through, does the seller's agent have any liability in this? Should I take both the seller and their agent to small claims court for the money I will have lost?


Asked on 2/14/08, 8:27 am

2 Answers from Attorneys
Ryan Bormaster D. Miller & Associates, P.L.L.C.

Re: Home seller unable to perform on contract

I think I can help you with your problem. I don't charge for office consultations. Email my legal assistant, Caroline Smith, at the following email address: "[email protected]" and leave us your contact information. She will call you to arrange for either an office consult free of charge, or a telephone consult.

Ryan B. Bormaster

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Answered on 2/14/08, 4:00 pm
Cheryl Rivera Smith The Smith Law Firm

Re: Home seller unable to perform on contract

Your recourse would be against the sellers (they might have recourse against the agent). With that said, if you hang in there for a short sale, you might be in an even better position than before. I have seen some deep discounts given by the lenders.

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Answered on 2/14/08, 4:52 pm


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