Real Estate Law
Have Real Estate Law Questions? Ask a Real Estate Lawyer.
Good afternoon. I am Loren, a licensed attorney, and I look forward to assisting you.
Does either contract contain any limitations on your exposure to liability, such as liquidated damages?
Thank you for the additional information. I am sorry to hear of your dilemma. I realize how frustrating this is for you and I hope to provide you information which is accurate and useful, even though it may not be the news you were hoping to get.
Unfortunately, the equitable remedy referred to is called "specific performance" and it allows the buyers to sue for breach and ask the court to order you to sell the property to them for the agreed price.
The other side of the transaction (your purchase) may be a bit easier to get out of. Many contracts provide that a seller's sole remedy, if the buyers breach, is to retain the earnest money. While the loss of the deposit may be unpalatable, it is certainly preferable to open ended liability.
So, check and see if your contract contains that provision. That might give some protection to you.
You can also try to negotiate a release with the buyer and seller to terminate the agreements for a lump sum settlement. If this is possible, and you reach terms, make sure to get the settlement agreement in writing so that it is enforceable against the written contracts.
I realize this is probably not the answer you were hoping to receive. Also, please remember that this is not a moral judgement on my part. As a professional, however, I am sometimes placed in the position of having to deliver news which is not favorable to a customer's legal position, but accurately reflects their position under the law. I hate it, but it happens and I only ask that you not penalize me with a bad or poor rating for having to deliver less than favorable news.
Did you have further questions? Have I answered your question?