What is considered “Legal Cause” for breaking an offer to purchase real estate agreement?

Question

Last year we signed an offer to purchase real estate agreement in Indiana. It was my father in-laws house. Then a few days before closing my wife and her dad had a huge fight. Lot’s of name calling, on his part so my wife decided we were not going to buy the house so we walked away. There was only $1.00 of earnest money. However, the Default and Forfeiture statement in the contract says. “If this offer is accepted by the seller and the buyer without legal cause fails and refuses to carry out this agreement, buyer shall forfeit all earnest money and seller shall be entitled to recover its damages incurred as a result of buyer’s breach together with attorney’s fees and costs necessary for the enforcement of this agreement.” Now he says he wants to sue us for breach of contract. So again, my question would be what do they mean by legal cause for breaking the contract? If he never got the survey done, which it states in the agreement, is that legal cause? Is the name calling legal cause?

Answer 1

You need to consult an attorney in Indiana for the legal aspects, but on the practical side try to come to an agreement with your father-in-law. Are there any other family members that could intervene and patch things up?

Answer 2

was the survey contingent in the contract in order for the deal to go through if so this is a scare tactic to get you to perform. if not you need to seek an Attorney.

Good luck!

Answer 3

The lawsuit would be for "specific performance" .   YOu promised to perform but didn't .    The seller can't sue unless they did every single thing they agreed to.   Are you sure they didn't do a survey?  If not, you are free.   Would they be evil enuf to pay a surveyor to back-date a survey?  

Do you have any desire to just buy it and be done with it? Do they still like you?

Answer 4

John J., Try callling a real estate lawyer for assistance. You can find one from this site: http://www.realestatelawyerlocator.com/I... I only have limited experience in Vermont so I'm not familiar with Indiana laws and regulations.