What oo do if was selling my house but the buyer lost their job day of closing and I had already signed a lease?
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What oo do if was selling my house but the buyer lost their job day of closing and I had already signed a lease?
The buyer lost job day of closing 07/15 and I had already signed a year lease starting 07/01. The sale of house was pulled day on the day of closing and can’t afford both rent and a mortgage. My landlord said I am responsible for full lease if apartment cant be filled. What can I do to not suffer any more monetary damages? I will have to pay to move back into my house and paying for an empty apartment also. If my mortgage loan states the house while being financed must be my primary residence can I enter into another contract the lease of apartment that breaks my mortgage contract?
Asked on August 4, 2016 under Real Estate Law, Wisconsin
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
1) Your personal financial situation is NOT grounds to break a lease, and nor are the actions of a third party (e.g. the home buyer) who was not a party to or part of the lease. Regardless of what happens with the sale of your home, you are obligated ot the lease.
2) You can sublet or assign the lease to someone else, unless the written lease, by its terms, specifically prohibits that. Even if you can't sublet for as much as you are paying, you may be able to at least offset or reduce your losses.
3) Regardless of what the mortgage agreement states, the apartmet lease is valid. If you violate the terms of your mortgage, you could face liability or penalties under it, but one contract does not invalidate another; rather, the person who enters into contradictory agreements (i.e. you) is the one who would face the consequences.
4) You can sue the buyer for breach of contract (violating the agreement to buy your home) for any costs and losses you suffered--e.g. the monthly "carrying costs" of the house he was supposed to buy, from the date he should have bought it until the time you can actually sell it to somene else. Of course, if he does not have any money, even if you sue and win, you may not be able to recover compensation, since a court judgment does not money appear where there is none.
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