Expert: liznarr - 7/1/2008

Question
My sister signed a agreement of sale approx. 2 weeks ago and now the seller is saying he isn't going to sell the home.  The seller had also signed the agreement of sale.  Can you give me any idea of where she stands?
thank you

Answer
Hi Eric,

I apologize for the delay in responding.  I am out of town and have had problems receiving wireless signals on my laptop.

The Contract of Sale is the document that prevails when any problem arises with a transaction, and the terms therein will dictate what is to happen in the event of default by either party.  A Contract of Sale is a legally binding agreement, and if properly executed by all parties, they are all bound to it.

Generally, a Seller who defaults on a Contract without cause is liable for any out-of-pocket expenses the Purchaser has incurred.  Most contracts also stipulate that a Seller can be sued for specific performance (forcing a sale of the home).

If your sister’s contract covers the above, then it is up to her as to how she wants to proceed.  As you know, litigation can be expensive and very time-consuming.  If your sister has her heart set on this property, she should consult with a good attorney in her area for legal advice on how she should proceed.

I hope the above is helpful, and feel free to write again if you have additional questions.

Regards,
Elizabeth