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Ely, Counselor at Law
Category: Legal
Satisfied Customers: 102146
Experience:  Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
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If a receiver(appointed by a judge in a divorce case)

Customer Question

If a receiver(appointed by a judge in a divorce case) creates a contract to buy the marital residence for a buyer(one of the spouses in the divorce) change his mind about the spouse buying if the spouse has signed a purchase contract and given earnest money which was deposited by the title company?
The receiver mid way through me getting my loan approved by my lender changed his mind and took another offer that nets less money by $3000 without just cause.
Is this legal?
The receiver is claiming because HE didn't sign it he can change his mind if he wants to and sell to whomever he wants.
Submitted: 1 year ago.
Category: Legal
Expert:  Ely replied 1 year ago.

Hello and welcome to JustAnswer. Please note:This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

The receiver represents the marital estate via a court order. If the marital estate (via the receiver) entered into a binding contract with the buyer, then the receiver is bound to honor it, arguably.

So the question becomes whether or not the purchase order is a binding contract. Traditionally, both seller and buyer sign the contract. However according to contract doctrine and Texas Business and Commerce Code Sec. 26.01, a contract only has to be signed "by the person to be charged with the promise or agreement" - which many have successfully argued to mean that only the buyer has to sign it - whoever is paying money, that is.

As such, someone in your situation may wish to argue that the contract is now binding. But what if the receiver does not honor the agreement? Since the receiver reports to the Court and this is within a divorce matter, someone in your situation wants to file a Motion to Compel or similar motion, asking the Court to force the receiver to honor the contract and to sell the home.

Then, the Judge decides, going off both contract law and other nuances that may factor in since this is a family matter.

I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.

Customer: replied 1 year ago.
There was no just cause. My lender was keeping him in the loop that everything was going fine and he did this the week the appraiser was suppose to come out.
Expert:  Ely replied 1 year ago.

Then at this point, I would consider said motion, and also possibly an ex-parte/emergency injunction to keep the receiver from selling to anyone else while the motion it pending to be heard.

Gentle Reminder: Please, use REPLY or SEND button to keep chatting, or RATE POSITIVELY and SUBMIT your rating when we are finished. You may always ask follow ups at no charge after rating.

Customer: replied 1 year ago.
Also what should you do when the receiver has been harassing you? His staff calls and emails constantly saying I am not showing the house when I have accepted every showing accept one when I was sick. They are involving my divorce attorney which is racking up heavy bills only to turn around and say that I was correct and I have been showing once I ask for the CSS report. They said that they would have me and my small kids evicted if I didnt sign the contract and give the deposit and then pulled this. I pay all the house hold bills and keep the house in show ready condition. Is this legal?
Customer: replied 1 year ago.
Can I get legal fees reimbursed for false accusations that are resulting in legal bills?
Expert:  Ely replied 1 year ago.

It is legal per se, but that does not make it right. Someone in your situation can file a Motion for Clarification, asking the Judge to clarify their Receivership order and state how many times the Receiver can call, and/or, what is "overburdening" parties with court costs without merit.

The Judge may ask the Receiver to slow down a bit so as not to cause emotional/financial drain.

One can ask for court/attorney fees in the motion. The Judge may award this if they feel that the Receiver was acting maliciously, but this would be rare.

Gentle Reminder: Please, use REPLY or SEND button to keep chatting, or RATE POSITIVELY and SUBMIT your rating when we are finished. You may always ask follow ups at no charge after rating.

Expert:  Ely replied 1 year ago.

Hello again. This is a courtesy check in to see if you needed anything else in regards ***** ***** question. I am simply touching base. Let me know. Thanks!