Can I sue a buyer who backed out 2 days before closing?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can I sue a buyer who backed out 2 days before closing?
My house was on the market for sale and a buyer made an offer. The buyer requested repairs be made which were done at a cost of 4k. The contract was signed and closing was to take place on 03/03. My wife and I packed up the house and moved out on 03/02. The
buyer didn’t disclose an IRS debt and her lender discovered it 2 days before closing. The buyer is delaying satisfying her debt. I spent money on moving and storage, repairs and I have to make another mortgage payment. Do I have a legal recourse?
Asked on March 13, 2017 under Real Estate Law, Pennsylvania
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Yes, you can sue the buyer for "breach of contract" to recover any costs or losses you have incurred due to their breach, including carrying costs (e.g. mortgage payments, insurance, taxes) for still having the house, your moving and storage costs, etc. (Probably not for the repairs: you'd have had to likely make them for any buyer, and are getting value of them yourself in the interim, so they are not really a "loss" to you, even though you spent money on them.) You could also keep her earnest money/deposit for her breach.
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Yes, you can sue the buyer for "breach of contract" to recover any costs or losses you have incurred due to their breach, including carrying costs (e.g. mortgage payments, insurance, taxes) for still having the house, your moving and storage costs, etc. (Probably not for the repairs: you'd have had to likely make them for any buyer, and are getting value of them yourself in the interim, so they are not really a "loss" to you, even though you spent money on them.) You could also keep her earnest money/deposit for her 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 AttorneyPages.com 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.