Seller trying to back out close to closing

[stummo]

What is the name of your state?What is the name of your state: Massachusetts

Hello,

We have signed the P&S, placed a substantial downpayment, and completed the required steps to get this deal done. Now, ten days before the closing, the seller has decided to back-out.

We have already spent $600 (inspection and bank appraisal) and I'm sure that we are still obligated to pay most of the closing costs (upwards of $4k).

The bank attorney says that we must proceed as if the deal is still on. My understanding is that if we do anything which breaks the contract, our downpayment will be in danger. We need to go over for a final walkthrough, making sure we have a witness for when the seller denies us access. And then we need to show up at the closing and wait around until time runs out for the seller to show. In short, we must do nothing to endanger the deal from our side.

Meanwhile, the seller will first default when he refuses our inspection, and again on the closing date.

We consulted a litigation attorney who wants a $6k retainer, after he receives this he'll start in on the seller.

If we hire this attorney and sue for damages, how likely is it that we'll be able to recover any of the costs we've incurred so far, and if we'll be able to recover the attorney's fees in the damages?

Thank you

 

[HomeGuru]

What is the name of your state?What is the name of your state: Massachusetts

Hello,

We have signed the P&S, placed a substantial downpayment, and completed the required steps to get this deal done. Now, ten days before the closing, the seller has decided to back-out.

We have already spent $600 (inspection and bank appraisal) and I'm sure that we are still obligated to pay most of the closing costs (upwards of $4k).

The bank attorney says that we must proceed as if the deal is still on. My understanding is that if we do anything which breaks the contract, our downpayment will be in danger. We need to go over for a final walkthrough, making sure we have a witness for when the seller denies us access. And then we need to show up at the closing and wait around until time runs out for the seller to show. In short, we must do nothing to endanger the deal from our side.

Meanwhile, the seller will first default when he refuses our inspection, and again on the closing date.

We consulted a litigation attorney who wants a $6k retainer, after he receives this he'll start in on the seller.

If we hire this attorney and sue for damages, how likely is it that we'll be able to recover any of the costs we've incurred so far, and if we'll be able to recover the attorney's fees in the damages?

Thank you

**A: hire another attorney.

 

[steveasu]

Dear Sir or Madam,

I am currently in the same situaion as you. Everthing is the same for me with the exception, that it is property without a house and the seller is trying to "extort" more money from me. I propose that we share notes. I will begine by offering you some information that I have learned.

In my situation an attorney wanted to have $5,000 up front to start a legal suite. However, he neglected to tell me that Mediation and Arbitration was an option. I had used a sales contract that was from a local realestate association. And in that sales contract was a mediation and arbitration clause. It was a "fairly standard" mediation and arbitration clause stating that the costs would have to be shared between the buyer and seller. In addtion, if the mediation failed, the resulting arbitration would be binding and could award legal fee damages as well. This does offer a far less expensive rount than paying the $5,000 up front money. In your case, if you were working with a realitor, they would likely have sent the puchase offer on such a form of sales contract. If I were you I would read through your contract with the seller and see if you see a section entitled "Mediation and Arbitration" or someting of the like. I understand such section are fairly common.

Now that I have shared some information with you I would greatly appreciate it if you could forward your future findings to me as well and have a mutual sharing bennefit.

My contact information is as follows:
S. Bietz
Office: 205-507-3782
Home: 205-621-0568
Cell: 205-586-8607
work email: [email protected] (I prefer that you send to this email as I only check my personal email about once per week)
home email: [email protected]

Best Regards,
S. Bietz

 

[HomeGuru]

Ok, you guys can email each other.