Can I be sued for breach of contract if there’s an abstract judgement against me.

UPDATED: Oct 2, 2022

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Can I be sued for breach of contract if there’s an abstract judgement against me.

Hi, I had a property under contract and during the process the title company
discovered I have a judgment lien against another property I own. The judgment
lien was paid in full but a release of judgement was never file by the creditor.
The lawyer who worked on my case contacted the creditor’s legal team to get this
resolved. We’re still waiting to clear the title after 3 months. During this time
the contract date expired, and now, the buyer file a complaint for breach of
contract. The buyer never put down a deposit or earnest money. There’s nothing I
can do until the judgement is cleared. My hands are tied. Does he have a legal
case. Is the contract voided and am I legally responsible for this if it’s taken
this long to clear the title. I’m in Houston, TX by the way. Thanks.

Asked on September 30, 2019 under Real Estate Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

If you could not close on time for any reason, including a judgement which is still recorded against you, you were in breach of contract and could be sued by the buyer for any losses he suffered (e.g having to rent someplace else to live and/or store his belongings) due to your breach. However, if the buyer breached first--for example, if the contract required him to put down a deposit or earned money, but he never did--then he can't sue and win: once a party breaches, he can't enforce the contract against the other party. (He can try to sue, but you would have a strong defense if he was in previously in breach.)

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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