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Roger, Lawyer
Category: Real Estate Law
Satisfied Customers: 30868
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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We are currently in the process of trying to close on selling

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We are currently in the process of trying to close on selling our house. After the appraisal and all the fees added in, long story short we have to bring 12,000 to closing. We at first thought we would be able to cover it, but we can't even get a loan to cover everything due to all our other current loans. Both realtors said they would take cuts on their commissions so we could atleast close and we could pay them on a monthly basis. After reviewing our personal finances we found that this was going to financially cripple us and we talked it over and just wanted to back out of the deal. Now we are being threatened with still having to pay commissions and possibly being sued into selling our home anyway. We are beyond frustrated and feel as though we have no rights here. Its not like we don't want to sell and changed our minds, we just cant afford an extra 12000.00 dollars at this point. We appealed to the buyer for help, and he would not contribute anything.
Hi - my name is XXXXX XXXXX I'm a Real Estate litigation attorney. Thanks for your question.

Unfortunately, if you agreed to the sale and to paying the $12000 at closing, the buyer can sue you for breach of contract and even for specific performance, which will require you to perform your obligations under the contract.

Thus, there is legal exposure to you for failing to fulfill the contract. If the buyer were to sue, it could seek damages for the money or expenses incurred, and also for any other money or loss that the buyer incurred.

In a situation like this, you are really better off working out a way to pay this obligation instead of breaching the agreement and being sued.

I can understand that this is a difficult situation, but if you agreed to pay this money, you can be legally held to that promise.
Customer: replied 3 years ago.

I expect to pay the buyer for all he has tied up thus far...inspection, repairs and so on. Would that make the situation any better? Just after reviewing all our finances it is making it financially impossible to get out of our home and be able to make it with all the extra debt we are racking up. As much as we want to. We feel like we are being pushed into a situation that will really hurt us financially. I know we agreed to it, but we have been turned down every where we turn for a loan

I can certainly understand your concerns, and I can see why you have reservations about going forward.

If you are willing to offer the buyer any out of pocket expenses in order to make things right, the buyer certainly can accept that and agree to cancel the agreement and walk away from the contract and forgo any further claims against you. However, this will be something that you'll have to try and work out/negotiate with the buyer.

If you can reach a deal with the buyer, and avoid being sued, that will certainly help your situation greatly. Any time you're the party that breaches an agreement, it is time to perform damage control and try to work out a deal with the buyer to resolve the issue. If you're willing to compensate the buyer for any incurred expenses, that should certainly help you in this endeavor.
Customer: replied 3 years ago.

One more question, we were also told that we may have to pay the realtors comissions if we breeched contract. Is that possible, can they really go to the extent of forcing us to pay them? Is that a typical thing?

Yes, it is possible for the realtor/s to sue for the lost commission, but there could also be an out for you under the contract. Often, realtor contracts have language that says commission is only due if the loan closes, etc., so you would need to review the agreement to see if there's any clause that may give you some right to challenge.

Thus, you do have exposure -- unless the contract gives you some relief.

Please let me know if you have any additional questions related to this issue. Also, please positively rate our conversation so that I may receive credit for my research and response.


Roger, Lawyer
Category: Real Estate Law
Satisfied Customers: 30868
Experience: BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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