Legal Question in Real Estate Law in Texas

purchaser rights, buyer default on contract

I am a G.C. in Texas. A buyer has defaulted on a purchase contract for a custom home & is threatening to put a lien on the property to try and force foreclosure if he is not repaid for the money he claims he invested in the property during construction. Mediation has been scheduled and I am looking for a specific property code, court ruling, etc. that details his risk in purchasing items over budget on a home he did not yet own. I wish to put the home on the market and sell reasonably without having to fight a future ''cloud on title'' issue. Any reference suggestions?


Asked on 4/07/07, 3:56 pm

1 Answer from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: purchaser rights, buyer default on contract

You should rely on the terms of your contract. Buyer is relying on the theory of unjust enrichment in asking for reimbursement. If you are unjustly enriched (e.g. you may be able to get a higher sales price) by his upgrades, then you may be held responsible to reimburse. If the upgrades are of no significance in increasing the price, then the facts are on your side. This is a fact dispute, not a legal dispute.

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Answered on 4/08/07, 7:02 am


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