The seller is backing out of our contract. Please help.

Question

We recently purchase our first house from an older woman who agreed to have fixed any major problems if inspection revealed this. We put deposit down. We paid for inspection and FHA inspection also. Septic failed and the contract covered this along with some heating and plumbing repairs. Some repairs were made.Now the family members of this woman are flipping out because this is money out of their pocket. She is now under great pressure by children and grandchildren and they want her to back out of the sale and they also want us to pay for the repairs that were already done on this house. She had agreed to the contract but now they are saying she doesn't have to fix the septic. We are under contract and are 20 days from settlement. Can this family do this to us? What about our 2500.00 deposit and the 1375.oo we put out for the inspections? Our agent said this family has decided that they will put the house back on the market AS IS CONDITION and be done with us. Please give us some advice. Thanks

Answer 1

If you were under contract, the owner must sell or return any and all money. If you have a ready and willing buyer, you must proceed with the sale. The family can stop the sale, but you can sue them for breaking a legal contract. If there's already a closing date, I assume papers are signed and lawyers are involved. Seek legal advice and warn their agent that you will pursue it legally.

Answer 2

Get a lawyer, these people are yanking your chain.  

Answer 3

sounds like your agent is the sellers agent also you can pull out of the deal at anytime just tell you lender not to fund the loan and they will have to give back the 2,500 deposit if the lender says something is wrong with the paperwork the 1375 for the inspection is lost also if you have in writing the fact they said they will fix what ever the inspection found will also work in your favor in california you agent has to disclose the he/she is also the sellers agent.

Answer 4

Your agent should be telling you a whole lot more than that...they should know the ins and outs about this sort of thing.  If you can't get thier help and they just try to drop it at that then get a lawyer and get one now.

Answer 5

Seek the help of an licensed real estate attorney, IMMEDIATELY!!

Seriously, no joke, my mother's a real estate attorney in TN and the best possible solution is to get professional advice.  That way you'll know the law as well as your best chance at settlement, closing, etc.

Answer 6

I agree with your first post response.  You need legal help, but...with the high cost of an attorney, you should seek assistance with prepaid legal service.  I currently work as a business associate with prepaid legal services, a NYSE company that has been in business for over 35 years and covers 28 areas of law, including, but not limited to real estate.  Feel free to visit my business website:  www.prepaidlegal.com/go/valeriemin and also the official website:  www.prepaidlegal.com for more information.

I wish you the best.

Answer 7

The first thing your real estate attorney will do is file a document called a "lis pendens". The words mean litigation pending. NO POTENTIAL BUYER CAN OBTAIN FINANCING WITHOUT REMOVAL OF THIS DOCUMENT OR POSTING SUFFICIENT BOND TO ALLOW THE PROPERTY TO BE SOLD.

    The second matter is to let the family know that their inheritance will be delayed at least a few years and by many thousands of dollars of attorney fees by fighting this suit.

     There is a maxim in law and politics that is expressed that when you grab them by "a sensitive part of human anatomy" their hearts and minds will follow. My guess is that this will settle in a few months. Notwithstanding, you must approach this in a manner that says last standing person wins all....

       You may win a few points by pointing the family to the woman's real estate agent who failed to provide a pre-determined  maximum cap for necessary repair expenses and allowed this provision to be included in an older house likely to reveal hidden defects by inspection. This will gove them a target for their potential losses in the repair costs.

        Good Luck

Answer 8

I think that you should go to your agents BROKER & talk to them about it.This does not seem legal & I would say that your contract would give you the right to take them & your agent to court....and win.I believe that the seller agreed to the FHA terms(they tend to require everything to be more up to code,then that is her fault.You should definately have some legal backing through FHA(I would contact them, and the Realtor association in your area)Furthermore, the seller now has to legally disclose of any problems that they are aware of.I do NOT think that you have a good agent,sorry.The words I WILL TAKE THEM TO COURT....should worry the broker enough that he/she will have to find a loophole.