Legal Question in Real Estate Law in Washington
Seller backing out of signed P&S contract
I have a Purchase and Sale agreement signed by seller and me (the buyer). I signed escrow today to close in 5 days. The seller is now refusing to sign escrow (sell the prop) to me unless I agree to purchase his adjacent vacant lot. This is not part of the home P&S. Financing for the vacant lot is too difficult to obtain and as I said not part of the original P&S that we both signed. Meanwhile, I have sold my house, packed up our things, pulled my kids from school and registered them in a new school, notified the utilities, etc.. And now the seller is refusing to sign the escrow documents and if he does not, I and my wife and 2 children will be homeless in 6 days. Can the seller get away with refusing to sign just days before closing, can I sue for non preformance and force him to honor the contract and sell the home to me? or can I only sue for damages afterward? What recourse do I have? I can't believe he's doing this after I've turned my families lives upside down. What can I do?
2 Answers from Attorneys
Re: Seller backing out of signed P&S contract
Having read the earlier post, I will try not to repeat what's there, but rather supplement it. First, know that specific performance as a remedy, means you could force the seller to sell you the property. This assumes a judge grants this to you.
What is equally, if not more important, is if you are dead set on getting this property, you need to file a breach of contract and a lis pendens to prevent the sale of the home to a third party.
That ought to get the seller talking pretty quick. If my firm can be of assistance, please feel free to call us at (206) 223-9510.
Re: Seller backing out of signed P&S contract
Dear Buyer,
The following answer is going to be fairly general, because without seeing the contract I am not able to give you advice specific to your situation. That being the case, I still may be able to be of some assistance here.
The general rule is that a Purchase and Sale agreement signed by both parties is enforceable, and breach of the contract by either party will usually entitle the non-breaching party to remedies such as specific performance of the contract or other damages. Remedies available will depend upon the specific circumstances of the situation, including the language of the contract. If the signed purchase and sale contract never included the vacant lot in any fashion, then the seller is likely in breach of the contract, and the buyer is likely entitled to remedies for breach.
As for what you can do next, you have a couple of options. You can contact the Seller, and remind him of the general rule of contracts, and see how that works out. That may be enough to get him to follow through. If it is not, I suggest that you take your P&S contract to a Real Estate attorney, who will then be able to review it and advise you of appropriate actions. If you find that you require the services of an attorney, please do not hesitate to give me a call.
Sincerely,
Julia A. Youngs
(425) 284-4458