Is seller liable for fees or damages if he backs out?

What is the name of your state? California


Hi,

Thanks in advance for your assistance.

A friend of mine accepted a bid on his house from a buyer who was pre-approved, signed the contract to sell his home and all requirements to close have been met on a timely basis by both parties. However, his home is still titled in the name of himself and his ex-wife, and his ex-wife did not sign the contract to sell, and additionally will not sign a quit claim because the division of equity in the house is still being litigated (divorce is not final because house is still being fought over).

My friend realizes he acted hastily, and would like to back out of the contract to sell until he settles the divorce. The buyer is stating that they will take legal action to hold him to the contract to sell. (?) My question is two-fold:

1. Was the contract to sell never valid because both title holders did not sign it?

2. What recourse does the buyer have against the seller? Can he claim that the seller misrepresented his ownership in the house, and recover fees relating to the transaction, or additional damages? My friend was assuming that the ex-wife would agree to sign a quit claim to the house so he could complete the transaction without her signature on the contract.

Thanks again for your time.

Dina

[HomeGuru]

Originally posted by DinaJ
What is the name of your state? California


Hi,

Thanks in advance for your assistance.

A friend of mine accepted a bid on his house from a buyer who was pre-approved, signed the contract to sell his home and all requirements to close have been met on a timely basis by both parties. However, his home is still titled in the name of himself and his ex-wife, and his ex-wife did not sign the contract to sell, and additionally will not sign a quit claim because the division of equity in the house is still being litigated (divorce is not final because house is still being fought over).

**A: if in the divorce decree property distribution agreement, she agreed that the property would be his, then he can sue to force her to sign the quit claim deed.
*********

My friend realizes he acted hastily, and would like to back out of the contract to sell until he settles the divorce. The buyer is stating that they will take legal action to hold him to the contract to sell. (?) My question is two-fold:

1. Was the contract to sell never valid because both title holders did not sign it?

**A: see above.
******

2. What recourse does the buyer have against the seller? Can he claim that the seller misrepresented his ownership in the house, and recover fees relating to the transaction, or additional damages? My friend was assuming that the ex-wife would agree to sign a quit claim to the house so he could complete the transaction without her signature on the contract.

Thanks again for your time.

Dina

**A: the Buyer can sue for specifc performance, breach of contract etc.