When making a property deal, the seller generally won’t want to back out of the deal. However, the seller could change his mind for reasons such as getting a better offer from someone else, some circumstances that would discourage him from selling the property, or any other fear the seller might have. The course of action available to the buyer would be to claim damages from the seller, terminate the contract and recover the deposit amount with any additional expenses incurred, or go to court to request performance of the purchase agreement.
The buyer should be careful of the fact that despite the legal remedies mentioned above, the seller may have included some contingency clause in the agreement that would allow him to terminate the contract without incurring any penalty, for example, if the contract has A provision for the seller to back down in the event that they cannot find another home to live in despite a genuine attempt on the same, taking legal action against the buyer in such a scenario would likely amount to very little.
Claim damages
The buyer could claim damages if the seller intentionally breached the contract and this resulted in a financial loss for the buyer. Even if there is no additional financial loss to the buyer, and the seller’s breach of contract was despite his best and sincere intentions, the buyer should in all likelihood be able to recover the deposit amount with interest and any additional expenses. such as real estate attorney’s fees, or the cost of the seller’s premises inspection performed. Damages could be greater if the seller is found to have pulled out for insincerity, for example, the seller may have received a better offer for the same property. The amount of the claim would depend on the additional financial loss incurred by the buyer.
Finished the contract
The buyer can terminate the contract and claim the money deposited from the seller in scenarios where the contract was not valid or was not signed by both parties, or if the seller breached the contract. Usually the buyer can successfully claim the deposited amount, even if the contract includes a non-refund clause.
Comply with the contract through a court order
The seller can go to court to be ordered to complete the deal. This is an option mainly in cases where the seller can, but is not willing to sell the property. In addition, the buyer must be able to fulfill their part of the agreement and the contract must list very clearly, without ambiguity, all the necessary details, such as the amount of the down payment, the guarantee, the legal description of the property and any other properties in it. . that is included with it, financing details, terms and conditions, etc. If the court learns that the seller is breaching the purchase agreement for his personal gain, there is a good chance that the court will order performance of the contract, resulting in the termination of the deal.
If you find yourself in such a situation, your main considerations should be whether the seller’s actions violated the sales agreement and how you can regain physical possession of the property or at least your money. It is always advisable to contact a property attorney or law firm that can safeguard your interests against a delinquent seller.
This article is for informational purposes only for individuals looking to buy or sell real estate and should not be construed as legal advice. If you are looking for legal advice, you can contact ADB & Partners.
