Hello XXXXXXXX,
I would first read your contract and see what it says about defaulting on the contract. By not wanting to sell you are essentially defaulting on the contract and there will be consequences. It would involve a lawsuit if the Buyer chooses to initiate one.
A buyer has certain remedies available to him or her if a seller wrongfully refuses to either give title to the real estate or otherwise defaults on an agreement of sale between the parties, unless there is a provision in the agreement that limits the seller's remedies.
A seller may not escape a duty to perform a contract of sale on the ground that a state law imposes significant environmental cleanup costs on the seller.
Where the seller wrongfully fails or refuses to perform its obligations under a contract for the sale of real property, the buyer has three basic remedies:
Money damages are generally measured by the difference between the contract price and the market value of the property. However, in some states, ordinary contract damages for the seller's breach, which is the failure to fulfill contractual obligations, will not be available unless the seller has acted in a dishonest manner or has been unwilling to perform. Under this rule, the seller acting in an honest manner who is unable to perform will only be liable for return of the down payment plus interest and reasonable expenses.
In the event of the seller's breach, or where no contract is actually entered into, or where a contract made is invalid or unenforceable, the buyer is generally entitled to terminate the contract and recover any payments made.
Where both the buyer and seller agree to terminate the agreement, generally the buyer may recover purchase money paid, even if the contract provides that such payments will be forfeited if the contract is not performed. A deed or contract may be revised if there is mutual mistake or fraud.
If the seller is able but unwilling to perform, an action for specific performance may be instituted. Specific performance is where the party claiming a breach of contract wants to complete the transaction according to the terms of the contract, rather than receive monetary compensation (damages) as a result of the breach. Specific performance is not a matter of right, but a matter of a court's discretion. It is appropriate when the agreement is definite and unequivocal and where the parties cannot be returned to their former positions. If the sales contract allows the seller an unconditional right to cancel, the buyer will probably not be entitled to specific performance.
Please let me know if you have any other questions, or require clarification of this matter. Otherwise please hit "ACCEPT", so I may receive credit for my response.
Lawyer
Specialize in all phases of commerical and residential real estate transactions
A have a follow up question regarding the POA document.
I have a photocopy of the original Power of Attorney document giving authority to act on my mom's behalf.
I do not have the original since it gave the original to the bank when taking out a line of credit and the bank neglected to return it. The photocopy is not court-certfied. It is a durable POA that gives me broad authority including real estate transactions.
I signed the real estate listing agreement and real estate sales agreement on my mom's behalf using my name, POA.
Does this make the real estate listing agreement or reals sales agreement invalid or unenforeable since the POA is not registered with the court and I no longer have an original to be certified? My understanding is that real estate transactions require a court-certfied POA.
Thanks,
John