Posted on: 26 July 2017
After your offer on a home has been accepted, the expectation is that at some point, you will take possession of the home. Sometimes though, the seller backs out. If you have fulfilled your end of the buyer's agreement, you might have a legal option available to you.
What Legal Option Do You Have?
If you have attempted to talk the seller into continuing with the sale of the home, you could possibly file a lawsuit against him or her. The lawsuit for specific performance is basically your request for the court to force the seller to continue with the sale of the home.
Once the agreement was signed by both you and the seller, it became a legally binding agreement. Depending on the point at which the seller backed out, you could have sold your home, paid for an inspection, had an appraisal, and completed all the other footwork necessary to buy the home. The seller backing out could have serious financial consequences for you.
Normally, suing the seller for monetary compensation would be the only option, but if it is not an equitable amount to what you have lost, you can then file a suit for specific performance.
What Conditions Must Be Met?
Before you can file the suit for specific performance, you need to determine if it is possible in your case. Certain terms must be met, including having a written purchase and sale agreement. The terms of your contract are also important.
For instance, if your contract requires arbitration or mediation, you might be required to attend those proceedings. If arbitration is required, the arbitrator's decision regarding the home is final and you will not be able to proceed with the suit for specific performance. However, mediation would allow you to continue.
You also must prove that you were in the position to fulfill your end of the contract. For instance, you need to provide evidence that your home loan was approved to show you could buy the home. If you have already sold your home, provide evidence of the sale in your lawsuit.
Due to the complexities of filing a suit of specific performance, you need to work with a real estate attorney. He or she will help determine if your case meets the requirements for the suit. He or she will also help find other legal remedies for dealing with the damages that you have suffered from the seller's actions.Share