Need Some Legal Advice...Fast!

[Per-Ling]

I'm active duty military displaced between duty stations and was under contract to by a house. My pregnant wife and 3 year old son are living in a cramped hotel room. The seller, one week away from the closing date and after a conference with God has decided to pull out of the contract. What recourse do I have? Does he HAVE to sell because he's under contract? Can I sue for lodging expenses, food and sundry items due to his prolonging of my homelessness? Please Help!! (I'm in Georgia, if that helps you lawyer types)

[RichardW]

A good experienced real estate agent could put the fear of the Lord into this reluctant seller. Sounds like seller's remorse to me. This comes up all the time. You could sue the britches off the seller. But it seldom comes to that.

[isthisnickcool]

Does the seller know your personal situation? If not make sure your realtor tells the listing agent. Make sure the agents and their brokers get involved too.

Is it a buyers market where you are buying? Did you pay the asking price? Was the house underpriced? I wonder what the sellers motivation really is for stopping the deal? What's their situation? Were they looking at purchasing another house? Did THEIR deal fall through.

How much money are we talking about? You likely paid for inspections etc. Is it enough to even hire a lawyer over and fight?

Sometimes you are better off just licking you wounds and getting to the next deal.

Good luck.

PS - First rule of real estate. Never never never "fall in love" with property.

[gcruse]

Until closing, when the papers are signed, neither of you are under any legal obligation to do anything, except for any earnest money you put up. Had you pulled out, you might have lost your earnest money.

[Per-Ling]

My job (MOS to you groundpounders) has me at 2 different duty stations (Ft. Gordon and Ft. Meade). The Navy isn't going to send me permanently anywhere else.

Thanks for the advice, but there are other variables at work here...

[Quix]

Am nothing close to an atny.

However, given that he claims God told him . . . I might say something like this to him . . .

Sir, you noted that God told you to break our contract. Evidently your faith in God is very important to you to cause such drastic action.

By the way--what church do you attend? Is the pastor a good one?

---

After getting sufficient info about the church, you could follow up with:

---

I assume, therefore, that you would be willing to follow the Biblical injunctions about taking differences to the wiser, elders of your church to decide the matter rather than to a secular court.

BTW, I was wondering, are you familiar, Sir, with:

Psalm 15:4
In whose eyes a vile person is contemned; but he honoureth them that fear the LORD. He that sweareth to his own hurt, and changeth not.
(Whole Chapter: Psalm 15 In context: Psalm 15:3-5) KJV

and in the NIV:

Psalm 15
4 who despises a vile man
but honors those who fear the LORD ,
who keeps his oath
even when it hurts,

Sir, I would prefer to try and resolve this within your values and belief structure in an honorable way before God.

I will await your answer for 12 or 24 or some such hours. After that time, I will go to your pastor directly, myself.

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[STARWISE]

The real estate agent HAS to know the consequences of of a seller backing out of a signed contract after accepting deposit money. It is strange indeed. Go to the agent's broker IMMEDIATELY and simultaneously get a referral from the base for a qualified real estate attorney. Something is awry here.

Every area has a local multiple listing board and every state has a commission or agency that governs and monitors real estate practices. If you have a USO or Red Cross office near you, I would also call them and your Congressman there. Your status in the military may also prompt quicker action. THANK YOU for your service, sir. God Bless You and your family, and hang in there.

[patent]

Couple things:

>>>>>>It just doesn't seem right that they can back out this late.

If you have a contract, legally speaking they can't. What they can do is waste your time and money. Whatever you decide to do, you absolutely need to talk to an attorney. Plan on paying for this.

If you still want the house, you need to start your legal steps now.

If you do not want the house you need to make sure you are not financially on the hook for anything. How has the seller canceled, in writing or orally? This may be very important, say he just called you. Then you fail to show up at the closing, and God spoke to him again telling him to go through with it. Now everyone sues you for non performance. Bad. You need to be sure that whatever has happened has had a legal effect in your jurisidiction.

Also, how will the real estate agents get their commission? (and believe me, they want it). You need to know for sure what is going to happen here. Only a local lawyer can help with that. Find one.

>>>>>We've done nothing but concede from the beginning of negotiations just because I didn't want to bring my newborn home for the first time to room xxx at Motel 6.

Major thing. You are going to bring your newborn home to the Motel 6. You may think that sucks, but just accept it. Once you accept it you can deal with this mess. If you refuse to accept it you are going to get hosed even worse than you are now because you will make desperate - STUPID - decisions. Just accept that as your fate, and start to work towards a better future.

Desperate real estate buyers really get hosed bad.

For future reference, if you are negotiating with someone, and you find that you are making all the concessions, walk away. I don't care how much you want the house. Lots of people will take you for a ride when they find someone like that.

patent

[TheCPA]

I assume that the contract was written. In general, contracts regarding real estate must be in writing to be enforceable because of a law called the statute of frauds. If the contract was valid and the seller refuses to complete the transaction, you should review the contract for any damages clauses. It might have what is known as a liquidated damages clause where the damages are specified in advance. If not, you can sue for damages. I do not know if the rememdy of specific performance is available. You need to contact a real estate attorney fast.

[hope]

Excellent advice and comments!

[STARWISE]

Thanks, hope. and Ooops .. meant these comments for Per-ling:

The real estate agent HAS to know the consequences of of a seller backing out of a signed contract after accepting deposit money. It is strange indeed. Go to the agent's broker IMMEDIATELY and simultaneously get a referral from the base for a qualified real estate attorney. Something is awry here.

Every area has a local multiple listing board and every state has a commission or agency that governs and monitors real estate practices. If you have a USO or Red Cross office near you, I would also call them and your Congressman there. Your status in the military may also prompt quicker action. THANK YOU for your service, sir. God Bless You and your family, and hang in there.

Sry for the double post ;-)

[patent]

>>>>Until closing, when the papers are signed, neither of you are under any legal obligation to do anything, except for any earnest money you put up.

You are not correct here.

There are typically three steps to a real estate transaction.

First, the offer and acceptance. Once accepted, you have a contract that obligates both parties, subject to the inspection. Reality: its easy to walk away as the contract is easily voided by inspection

Second, inspection over and purchase contract signed. You have legal rights to the property, and they have legal rights to your money.

Three: closing. You now own property in your name, and they have your money.

They are obligated to perform, certainly at the second step, and well before closing. You can't just walk away willy nilly.

patent

[longtermmemmory]

If you have a contract, there should be a clause for specific performance. The real estate agent of the seller should say this.

Specific performance makes the seller perform under the terms of the contract and liable for out of pocket damages for the period of failing to perform.

[patent]

>>>>The real estate agent HAS to know the consequences of of a seller backing out of a signed contract after accepting deposit money.

Many real estate agents don't know anything. What little they learned to get their license was soon forgotten. There are many, many agents who are thorough professionals and know alot, but then there are also hacks who do it to pick up a couple extra bucks while little tommy is in school.

Depends on your agent.

patent

[longtermmemmory]

If there is a contract the seller CAN be forced to sell their home AND pay of the expenses of the delay. In addition most RE contracts have an award of attorney fees clause.

Use your agent to put screws on them. No sale no commission.

[gcruse]

I should have specified I am in Florida, not Georgia. I just went through a purchase last month, and my realtor told me that, until the papers are signed at closing, it isn't a done deal. The seller cannot change the terms of the deal willy nilly, but they can walk away if they choose.

[Per-Ling]

I thank you all for your advice. My wife has been watching in wonderment at the speed and thoroughness of responses. I lurk here every day but not introduced my wife to this wonderful community.

To try to clarify things...
My wife, son and I came up during my leave time between my last duty station and this present one for the expressed purpose of avoiding this very situation. Unfortunately, those of us in the military who want to have some semblance of a normal life in an area we know we will live for a while are really at the mercy of sellers like this. They know full well (and this seller did) of our circumstances...living in hotels on the 10 days worth of dislocation allowance the military gives us. In order to avoid living out of pocket in the community, military buyers like myself are willing to make some concessions in purchase to secure a place for our family to sleep. Sellers have us over the barrell and know it. What really burns me is when we in good faith, with VA finances already secured, with dickering being brief and realistic, put ourselves to the mercy of a seller who can at any time up to closing, play with a buyer like a toy. This seller was apparently discouraged in his own house-hunting effort, took it to the Lord in prayer, and I can only assume, the same Lord that told him a month ago to sell his property, had a change of heart.

Just some advice to you future sellers: say up front what you want and what you're willing to give. Commit before you put that sign in the front yard.

[Dubya]

Does the Realtor represent you or the seller or both? That will make a big difference to the Real Estate Commission.

[JoeFromCA]

"Until closing, when the papers are signed, neither of you are under any legal obligation to do anything, except for any earnest money you put up."

This statement is incorrect. In essentially every state only the buyer can walk away loosing only the "earnest money." Having entered into a contract for sale, the seller is obligated to sell and cannot walk away from the deal. Money damages are inadequate to compensate for the purchase of a unique item such as real property; the seller is compelled to perform (called specific performance).

Lots of commentators here who've never been to law school.

[patent]

>>>>my realtor told me that, until the papers are signed at closing, it isn't a done deal.

I'm not familiar with Florida law, but that would be a major departure from standard Real estate law. For what its worth, if you are ever in a situation where it matters, I would seek advice from someone other than a real estate agent, usually an attorney. I'm only on my second house (third transaction) and so far 4/6 agents involved have made major legal misstatements. At least one of the agents knew it was wrong and was lying to me. (He also claimed to not have a copy of the agreement-the one he had just stuffed out of sight into his pocket) If these guys didn't have standard forms to follow they wouldn't be able to actually get a deal done.

patent

[Per-Ling]

We each have our own realtor. Their realtor, however, is a relative of theirs...