Expert: Dick Dennis - 5/1/2006

Question
Hi, This is looooong-We live in NJ and listed our house for $1,199,999.99 and within the first week had two offers.  One for $1.3, waiving inspection, and a July 21 close and one for 1.220, with inspection, with a closing of June 1.  We took the higher offer for the money and for the waiver of inspection.  Both offers offered about 45%down, 30 yr. conv mtgs.  The 1.3 guy came thru attny review and met all contingencies, had appraisal, mortgage, etc. put down his 10% and out of nowhere decided he wanted a 5th bedroom so it would not work.  He was clearly in breach.  Sure enough realtor (dual agency)comes in after and says they misspoke--house appraised for 1.2.  My attny sent letter stating we are taking backup for 1.220 and intend to sue for breach.  He has now come back and wants 1.2 (appraised value) and will waive all contingencies and sign for liquidated damages where we keep his 130K if he fails to close with us by June 15.  Now he already set back my backup to June 26 instead of June 1 and has been difficult to deal with...I just released backup contract to attny and other party today.  Am I facing exposure to legal action from second party if I do let first guy get it now since he is further along in process and I have liquidated clause?  Thanks

Answer
The way I see it, once you decided the accept the 1.2 offer and sue the first guy for the difference, that is the way you should have gone. You cannot go in two different directions on the same property.

Your attorney is the one who should handle this the proper way. If this is not handled properly you may wind up with nothing PLUS a lawsuit.

I do wish you well.

Dick Dennis  dixiedee13@aol.com