What legal recourse do I have if repairs promised by the home seller were never made?

A contract for the purchase of a home is just that – a contract. It is legally binding on the home sellers who agreed to make the repair. As such, you may have a few different options.

Options for a Home Seller’s Breach of Contract

The first and easiest option is to contact your real estate agent and/or the real estate agent who represented the sellers. There may have been money placed into an escrow account for the repair that can be paid out to you. This would allow you to get the problem resolved quickly.

If there was no money in the escrow account, or no escrow account, then your only other recourse is to file a court action against the sellers. You could potentially file such an action for “specific performance” to compel them to fix the furnace, however this is probably not the best way to go because then you’ll be stuck with a house that has a broken furnace for the duration of the court case.

If you can’t wait around for the case to play out while you have no furnace, you’ll have to bite the bullet and fix it yourself. If you decide on this option, then you’ll file a civil suit to get back the money you paid out to fix the furnace. This money that you spend is considered to be “damages” for the seller’s breach of contract and as long as you keep careful records of the money paid out, you keep the costs reasonable, and you really did have a legally valid contract, then you have a good chance of winning your case and having the sellers pay out.

Case Studies: Legal Recourse for Unfulfilled Home Seller Promises

Case Study 1: Escrow Account Resolution

Jane purchased a home with an agreement that the sellers would repair the furnace before the closing. However, upon moving in, Jane discovered that the promised repairs were never made. She contacts her real estate agent, who informs her that there is money in an escrow account specifically designated for repairs. The funds can be used to address the furnace issue and ensure a swift resolution.

Case Study 2: Court Action for Specific Performance

Mike enters into a home purchase contract that includes an agreement for the sellers to fix a leaking roof before the closing. However, when Mike moves in, he realizes that the roof remains unrepaired. He decides to file a court action against the sellers, seeking “specific performance” to compel them to fulfill their obligation.

However, due to the lengthy legal process involved, Mike ultimately decides to fix the roof himself and files a civil suit to recover the expenses incurred as damages caused by the sellers’ breach of contract.

Case Study 3: Negotiated Settlement

Alex purchased a charming house with the understanding that the sellers would fix the faulty plumbing system before the closing. However, upon moving in, Alex discovers that the plumbing issues remain unresolved. Frustrated with the situation, Alex decides to explore legal recourse. Before filing any court action, Alex’s attorney reaches out to the sellers’ legal counsel to discuss the breach of contract.

Both parties engage in negotiations to find a mutually agreeable solution. After several discussions, it becomes apparent that the sellers are willing to cooperate and rectify the plumbing problems. To avoid lengthy court battles and additional costs, a settlement agreement is reached.

The sellers agree to reimburse Alex for the cost of hiring a licensed plumber to fix the issues properly. Alex receives the reimbursement promptly, and the plumbing is finally repaired.

Case Study 4: Mediation and Alternative Dispute Resolution

Chris and Emma bought their dream home, expecting the sellers to make essential repairs, including fixing a leaking roof. However, after the closing, they find that the sellers did not follow through with their commitments. Chris and Emma are dismayed and unsure of how to proceed. Instead of immediately resorting to a lawsuit, they decide to explore alternative dispute resolution methods, such as mediation.

A mediator facilitates discussions between Chris, Emma, and the sellers to find a resolution without going to court. During mediation sessions, all parties express their concerns, and the sellers acknowledge their failure to complete the promised repairs. Through mediation, a compromise is reached, wherein the sellers agree to provide Chris and Emma with a monetary settlement to cover the cost of repairing the roof themselves.

Getting Help When a Home Seller Breaches the Contract

If you do intend to pursue a breach of contract case, it is in your best interests to consult with an attorney for guidance and advice.