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TJ, Esq.
TJ, Esq., Attorney
Category: Real Estate Law
Satisfied Customers: 12357
Experience:  JD, MBA
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If I signed a short sale contract and it is at the bank. However,

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If I signed a short sale contract and it is at the bank. However, they have not approved the short sale yet. Now I am in a position to pay my mortgage and I want to back out of the contract. The bank says I can do what I want and they could help with a Loan Modification. However, what are the ramifications to me on behalf of the buyer and realtors?? I understand it is a breach of contract and they can sue but I am flat busted with bad credit the only asset I had was this house.
Hello and thank you for allowing me the opportunity to assist you.

In a worst case scenario, you can be sued for breach of contract (as you suggested), and the buyer could demand specific performance. In plain English, this means that the buyer could ask the court to order you to sell the house. Specific performance is allowed in real estate contract cases because real estate is unique ... in other words, the buyer cannot buy a duplicate of your property like he could a car if you were to breach a sales contract for a car. So, the worst case scenario is a lawsuit for specific performance.

Having said that, my guess is that it is highly unlikely that you would be sued for specific performance. First, the buyer would have to pay his own attorney's fees (which would likely cost him several thousand dollars), and second, most buyers do not want to deal with that kind of headache. They just want to buy a house and get on with life.

If you have an agent, however, then the agent could theoretically sue you for the lost commission. I would consider this more likely than getting sued by the buyer.

Does that answer your question? Please let me know if you need clarification, as I am happy to continue helping you until you are satisfied. Also, your positive feedback is much appreciated.

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Customer: replied 4 years ago.

For the most part. The agent was useless in this transaction. I had to send my stuff to the bank twice. There were two files open and it delayed the process and I corrected not the agent or their title company. When she listed it the amount was too low. She based her comps on houses with Mold damage in basement. We got an offer on 1st day after hit MLS listing. It was too low and yes I overstepped my bounderies and made a counter offer for the full MLS listing. Both agents were suprised but the buyer still signed. The listing agent came to show the house and I showed it to the clients. I answered all their questions. I want the 6% commission. All they did was put the MLS listing on, wrote a contract and had both parties sign.

Hi again.

It's possible that your agent's representation was so bad that you could claim that there was a breach of contract and that the agent is not entitled to the commission. I think that would be an uphill battle for you, but it's not an impossible argument to win if you have the right facts. Based on just the few facts that you wrote here, I doubt you would win that argument, but I also doubt that I know all the facts. There could certainly be other facts that strengthen the argument that the agent is not entitled to the commission.
TJ, Esq. and 5 other Real Estate Law Specialists are ready to help you