Legal Question in Real Estate Law in Texas
Real Estate Sales Contract
I signed what I thought was an owner finance purchase contract. It was actually an assignment of a purchase sale contract from an investor. The seller is now backing out of the contract saying that he didn't realize what he was signing and that the investor misrepresented himself. Also, the terms of the contract are Subject To Existing Mortgage and the seller was expecting a cash payout. So, now the seller is refusing to turn over the deed to the house saying the contract is not valid. The investor is telling me that this is now my problem but that the contract is valid and legally binding. My question is, do I enforce the contract and sue the seller or do I go after the investor for fraud. Also, are contracts such as what I describe legal?
1 Answer from Attorneys
Re: Real Estate Sales Contract
It all depends on what you want to accomplish. If you want the house, then you can sue for specific performance. If you want your money back, sue which ever person has it (I'm assuming the investor.) As for whether or not this transaction is legal, I can't say without reviewing the paperwork. I can tell you that there are many real estate "investors" who have no idea what they're doing, don't hire attorneys or title companies, and therefore tend to mess things up. My suggestion to you is to have a real estate attorney review the paperwork first and then, depending on your objectives, file a lawsuit.