Legal Question in Real Estate Law in Utah
Buyer forcing unlawful lawsuit
We are selling a home which is being constructed. House is under contract, but still not finished a year and a half after staring. Builder is a crook and stole $27,000 from the buyers which they gave him for upgrades, but he says he used on general construction. Buyers are now buying us out of our construction loan, but want us to escrow that $27,000 when we close. We never new about the money nor did our contract talk about that, but they're still trying to make us pay and are threatening a lawsuit.
One more... Original purchase contract was only signed by my wife, but her mother was and is currently on title but never signed the original contract. Could this be something? Thanks for your hlep.
1 Answer from Attorneys
Re: Buyer forcing unlawful lawsuit
You have a contract between you and the buyers which regulates the dealings between you. Both are bound by its terms. If the contractor "stole" money from the buyers, they should get the $27000 from the money which should be paid to him, or sue him separately for the breach of his agreement with them