Being sued by former potential buyer?

[weiwuwei]

What is the name of your state (only U.S. law)? Georgia

We're selling my late father's house, and had finally gotten an offer. We negotiated to an acceptable price and terms, but right as our real estate agent was faxing us the signed agreement (signed by the potential buyers, NOT by us) for us to sign, we got another (better) offer from a different party.

There was never any money put up by these first buyers, nor do they have anything that has been signed by us (no agreements, contracts, etc). There was never an official agreement put on paper and backed by money. They DID have an appraiser and an inspector come in the day they were faxing back the agreement (actually, hours before the agreement ever even got faxed), but that was never any part of any agreement by us or anything like that. They just went ahead and had their people over to look at the house, with no guarantees in their hands that they would be sold the house.

Now that we've gone ahead and chosen to sell the house to this second buyer for the better deal, this first buyer is threatening to sue us----for what, I don't know or understand, because like I said, they had nothing in writing and put no money down on anything (not even earnest money). I'm informed (by the internet, basically) that they can put some sort of lien on the house to prevent us from selling it to anyone else if they are successful.

Do they actually have grounds to sue us? Do you think this has a chance of going to court? We're still waiting to hear from their lawyer to find out what their idea of legal grounds for this are, but I wanted to have some info in the meantime. We figure they're just saber-rattling, but I wanted to be sure.

Thanks in advance!

[HomeGuru]

Originally Posted by weiwuwei

What is the name of your state (only U.S. law)? Georgia

We're selling my late father's house, and had finally gotten an offer. We negotiated to an acceptable price and terms, but right as our real estate agent was faxing us the signed agreement (signed by the potential buyers, NOT by us) for us to sign, we got another (better) offer from a different party.

There was never any money put up by these first buyers, nor do they have anything that has been signed by us (no agreements, contracts, etc). There was never an official agreement put on paper and backed by money. They DID have an appraiser and an inspector come in the day they were faxing back the agreement (actually, hours before the agreement ever even got faxed), but that was never any part of any agreement by us or anything like that. They just went ahead and had their people over to look at the house, with no guarantees in their hands that they would be sold the house.

Now that we've gone ahead and chosen to sell the house to this second buyer for the better deal, this first buyer is threatening to sue us----for what, I don't know or understand, because like I said, they had nothing in writing and put no money down on anything (not even earnest money). I'm informed (by the internet, basically) that they can put some sort of lien on the house to prevent us from selling it to anyone else if they are successful.

Do they actually have grounds to sue us? Do you think this has a chance of going to court? We're still waiting to hear from their lawyer to find out what their idea of legal grounds for this are, but I wanted to have some info in the meantime. We figure they're just saber-rattling, but I wanted to be sure.

Thanks in advance!

**A: what did your agent tell you?

[weiwuwei]

Originally Posted by HomeGuru

**A: what did your agent tell you?

He said they don't have any legal grounds, and said at the time we switched buyers that he felt bad for dumping the first buyers (because they had spent money hiring the inspector and appraiser) but said it was perfectly legal. That's why we're so confused as to where they're coming from! He's a real estate agent, though, not a lawyer (even though he usually sells multimillion dollar houses in the Atlanta area, so he has a ton of experience with clients who have enough money to sue anyone they want, so I'd assume he's pretty clear on what's legal and what's not, you know?)

[HomeGuru]

Originally Posted by weiwuwei

He said they don't have any legal grounds, and said at the time we switched buyers that he felt bad for dumping the first buyers (because they had spent money hiring the inspector and appraiser) but said it was perfectly legal. That's why we're so confused as to where they're coming from! He's a real estate agent, though, not a lawyer (even though he usually sells multimillion dollar houses in the Atlanta area, so he has a ton of experience with clients who have enough money to sue anyone they want, so I'd assume he's pretty clear on what's legal and what's not, you know?)

**A: the first contract was not accepted by you so your agent is correct.
The contract is unenforceable period. They have no cause of action against you.

[weiwuwei]

Originally Posted by HomeGuru

**A: the first contract was not accepted by you so your agent is correct.
The contract is unenforceable period. They have no cause of action against you.

Thank you!

[HomeGuru]

ok, good luck.

[weiwuwei]

Oh, one more question:

If they, for whatever reason, tried to take this to court even though they have no legal grounds (I don't see what lawyer would, but still), that wouldn't prevent us from selling the house, would it? The internet said that if they got a court to rule that the suit wasn't frivolous and agreed to hear the case at a later date, that's when they would put the lien on it to prevent a sale; but if we close in two weeks as planned, before a court ruled anything, they're up the creek, right? And there's nothing they can do in the meantime (before they get a court to do or say anything) to prevent us from closing, right?

[nextwife]

Originally Posted by weiwuwei

they had spent money hiring the inspector and appraiser

I don't get this. The broker actually allowed the buyers to go all the way through both an inspection and an appraisal BEFORE they even had an accepted offer?????

[weiwuwei]

Originally Posted by nextwife

I don't get this. The broker actually allowed the buyers to go all the way through both an inspection and an appraisal BEFORE they even had an accepted offer?????

Yep! We found it crazy, too!

[HomeGuru]

Originally Posted by nextwife

I don't get this. The broker actually allowed the buyers to go all the way through both an inspection and an appraisal BEFORE they even had an accepted offer?????

**A: occasionally it happens that way.