If we entered into a contract to buy a home thathas beencondemned by the city, what are our options?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If we entered into a contract to buy a home thathas beencondemned by the city, what are our options?

 We were never told about this.

Asked on December 15, 2010 under Real Estate Law, Texas

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

If the seller knew the house had been condemned and did not disclose this to you, you could sue the seller for fraud.  Fraud is the misrepresentation of a material fact made with knowledge of its falsity and with the intent to induce reliance on which you justifiably relied to your detriment.  In this case, fraud would be the nondisclosure of a material fact (that the house had been condemned) with the intent to induce your reliance on which you justifiably relied to your detriment by entering into the contract to purchase the house.  Your damages (the amount you are seeking in your lawsuit) would be your out-of-pocket loss ( the amount you had paid to purchase the home).

You should seek rescission of the contract and restitution of the amount you had paid.  Rescission and restitution would be appropriate if the seller did not know the house had been condemned when you signed the contract to purchase the house.

If the seller did not know the house had been condemned and tries to enforce the contract against you, you should assert frustation of purpose, and impossibility as your defenses to enforcement of the contract.  Frustation of purpose in this context means that the value of the contract has been destroyed because the house has been condemned.  Impossibility means that you cannot perform your obligations under the contract to purchase the house because the house has been condemned. 

 

 


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption