Do I have any recourse if Sellers back out (California Real Estate). Background:Made offer Early June.Sellers countered. We accepted and entered Escrow. Performed inspections and Appraisal and submitted a request for repairs within the 17 days required (Note: Got this done even though the sellers didn't give us access for first 7 days because they had graduation activities and family over). Seller responded to request for repairs by decreasing price $5k and agreeing to only do pest inspection repairs. Otherwise, counter indicated we are to accept "as is" and removal all contingencies even appraisal. During this time the appraisal came in low. At first we were not going to do it, but decided it was only $10k so after thinking it over we deceided to do it. We accepted counter and signed the contingency remvoal. Now they have come back - one week prior - and said they want to cancel the sale for "personal reasons" but will not disclose why. I personally think they are going to try and get more for it. BotXXXXX XXXXXne is that we want this home and have agreed to everything and done everything we needed to on time. We also have our house on market with offer, stuff in storage, etc. Any recourse??? I think they are just going to put in back on market in a week for more money. The guy is a Sr. Professional so this is not a money thing. (PS Not a short sale or foreclosure)
State/Country relating to question: California
Nothing. Just getting started.
Hello, I will be happy to assist you with your question. Please note that I cannot provide legal advice – I can only give you information concerning the legal issues raised by your question. I DO NOT receive credit for my work until you rate my answer as OK service” or higher. Please DO NOT RATE MY ANSWER as "Bad service" or "Poor service" (or the 2 stars on the left if you see stars), as such a rating leaves negative feedback for me personally. Instead, if you feel one of those ratings would be appropriate, please reply to me via the REPLY or CONTINUE CONVERSATION button with the issue you have, and I will be happy to continue further and do everything I can to provide you with the service you seek.Your Answer:Yes, you have recourse. Unless you waived this remedy under the contract, you have the right to sue the seller for specific performance.That means that they have breached the contract and you are suing them to make them carry through with the sale.You can read more about the remedy here:http://www.kinseylaw.com/clientserv2/civillitigationserv/specificperform/specificperformance.htmlThe contract may also provide additional remedies to you.As noted above, if you need clarification, please do let me know. And, again, I DO NOT receive credit for my work until you rate my answer as “OK service” or higher. Bonuses are always appreciated.If you later open a new question and would like my assistance, please begin the question with “To TMcJD….” This will ensure that only I answer the question. Thanks.
I realize I can sue for specific performance but are you aware of anyone who has been successful or do they just make the seller pay the fees that you are out and give your deposit back? My deposit won't help.
It is presumed by law in California that if you are buying Real Property for a residence that any normal remedy of damages for breach of contract would be inadequate and you would, therefore, be entitled to the equitable remedy of specific performance. The law is in your favor with regard to such a suit. Yes, others have been successful with such suits, but you can never be certain what will happen when you go to court. Their reason for backing out could be compelling enough that a court would not grant a decision in you favor. There's no way I could know that.If you need additional clarification, please do let me know. And, again, I DO NOT receive credit for my work until you rate my answer as “OK service” or higher. Bonuses are always appreciated.If you later open a new question and would like my assistance, please begin the question with “To TMcJD….” This will ensure that only I answer the question. Thanks.
Thanks. I realize sometimes there are "special circumstances" tht will allow the seller to back out. My gut tells me this is not one of those cases. Even if there is, have you heard of someone being able to protect themselves by limiting the seller from putting the house back on the market without giving us first right on our same offer (within some time period)?
If the seller doesn't have a legitimate excuse under the contract to not sell to you, they are in breach of contract. You can sue for breach of contract, but that would just get you compensated for any loss you suffer. If you want, you can ask for specific performance.Specific performance is the only remedy you have that would prevent them from putting the home back on the market for a higher selling price. You wouldn't have a right of first refusal on a future sale if they do put the home back on the market and that is not a remedy you could ask for in a breach of contract action.If you need additional clarification, please do let me know. And, again, I DO NOT receive credit for my work until you rate my answer as “OK service” or higher. Bonuses are always appreciated.If you later open a new question and would like my assistance, please begin the question with “To TMcJD….” This will ensure that only I answer the question. Thanks.
Real Estate Attorney
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