When making a property deal, the seller generally won’t want to back out of the deal. However, the seller may 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 apprehensions the seller may have. The course of action available to the buyer would then be to claim damages from the seller, terminate the contract and recover the amount of the deposit with the additional expenses incurred, or go to court to seek compliance with the purchase agreement.
The buyer should beware 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 penalties, for example, if the contract has A provision for the seller to back down in the event that they cannot find another home to reside in despite making a genuine attempt to do 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 deliberately breached the contract and resulted in a financial loss to the buyer. Even if there is no additional financial loss to the buyer, and the seller’s breach of contract occurred despite his best and sincere intentions, the buyer should, in all likelihood, be able to recover the deposit amount with interest and any Additional expense, such as a fee for the real estate attorney, or the cost of the seller’s inspection of the premises. Damages could be greater if the seller is found to have backed down due to 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 suffered 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. The deposited amount can generally be successfully claimed by the buyer even if there is no refund clause in the contract.
Enforce 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 any ambiguity, all the necessary details such as the amount of the initial payment, the security deposit, the legal description of the property and any other property in it. that is included with it, details of financing, terms and conditions, etc. If the court finds 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 that will result in the completion 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 specialized 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.
