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Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 53985
Experience:  32 years of experience practicing law and a businessman.
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I've cancelled the contract to buy a house 12 days before

Customer Question

I've cancelled the contract to buy a house 12 days before the closing date due an announcement made by my employer to lay off 950 employees in Houston. The seller refuses to take the earnest money and said he is going to sue. Can I be ordered to buy the house anyway? What's the worse that can happens to me?
Submitted: 1 year ago.
Category: Business Law
Expert:  Richard replied 1 year ago.
Hi! My name is ***** ***** I look forward to helping you!
The seller has no shot of prevailing in a suit for specific performance (forcing you to buy the house) even if he were stupid enough to file this suit. Your only risk is the earnest money if you back out. Even if your contract provides for specific performance in the event of default, the fact is that courts simply do not enforce specific performance against buyers. Rather, the courts consider the earnest money as adequate compensation to cover any losses of the seller because the seller still owns the property and can simply sell it to another buyer. Bot***** *****ne, you can walk with the only risk being the loss of your earnest money. Although you can never prevent someone from suing, the most you have to risk is the loss of your earnest money. If you sent a letter of termination, that's all you need to do. In spite of all the seller's efforts to intimidate you, he's not going to prevail in any claim against you other than getting to keep your earnest money.
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