Legal Question in Real Estate Law in Virginia
consideration or no consideration
Buyer and seller enter into a written sales contract which contract specifically states that a $100.00 deposit was paid to seller with signing of the contract. Said deposit was not given to seller, however, seller signed the contract and never requested the deposit. Further, seller and buyer after entering into the contract, later renegotiated the purchase price under the contract and seller initialed the contract change and still no issue of a deposit was raised. Buyer proceeded towards closing under the terms of the contract including ordering a title search, having soil work done, and hiring a closing attorney to prepare the closing settlement documents, which included the seller's documents which Buyer's attorney was to be responsible for preparing. Buyer contacted Seller three (3) days before closing on the property to arrange for Seller to sign the deed, etc. Seller told Buyer that he was no longer interested in selling the property to Buyer. Three (3) days later, Seller entered into an Option Agreement to sell the property to a third party. Although the deposit was not made, can Buyer make a valid argument that there was consideration for the contract especially since the contract was renegotiated a second time.
1 Answer from Attorneys
Re: consideration or no consideration
Sure, you can argue that there was consideration, but other than your time involved,
what else was there in terms of tangible consideration, e.g., title search fee, soil sample testing cost, closing attorney's fee, etc.? What exactly did these or other items which you expended in this failed enterprise add up to?
My sense is that there was probably not enough expended upon your part to warrant a suit in equity for specific performance or other litigation designed to secure you valid title for this property or appropriate damages in lieu thereof.
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