Legal Question in Real Estate Law in Texas
seller of property not real owner and contract expired
We were planning on buying a house from the man who lives behind the house we live in now after he put a for sell sign in his lawn. My husband and me went through w/all necessary paper work and paid for surveying, appraisal of a property, and termite inspection. This was going to be our first house and really feel that we were mislead by the seller. We agreed on a contract and we went through a mortgage company for the necessary paper work. But our contract w/seller expired and we tried to extend the original contract. Then we found out the seller was buying the house from someone else and he did not have clear title to sell us the property and we believe this is why he did not extend the contract. We would like to know what we could do to get reimbursed and if we should possibly place a lien on the property. We sent the seller a certified letter and telling him to reimburse use our cost, but have not heard back from him after 30 days. I also would like to know if I need to make the real owner of the property of aware. We want to know if we should pursue any legal action against him. If we do pursue legal action could it cost us more than its worth
2 Answers from Attorneys
Re: seller of property not real owner and contract expired
You are right about the cost. If you wish to take the seller to small claims court (the claim must be $5,000 or less) you pay a small filing fee, usually under $100, and tell your story to the judge. Be prepared to furnish all paperwork and evidence and there is no guaranty that you win. Good luck.
Re: seller of property not real owner and contract expired
If the fellow is to sell the house, he will still likely need the survey and perhaps some of the other paperwork may be salvaged as well. He might be willing to buy that paperwork from you to use in the next transaction. Or, he could simply have the people do it again. The cost to him is the same, so he is in the position to do you a favor and keep you from taking a loss, if he is still selling the property.
Normally a purchaser will want a title policy when they purchase a property. As to your rights, I do not have all the contracts and evidence before me, and you might have some rights, but you already pretty much said you were to have something done in a certain time frame and did not hold up your end of the bargain but you want him to hold up his promise despite your failure. That generally finds disfavor with the courts. You will do better to be sweet and see if he will buy your survey and paperwork if it can be used in the next sale. As far as his title, that is up to the title company which issues the title policy and the lender and whether the purchaser objects to his title.
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