What exactly is a breach of contract?

[Brendabeaty]

I live in Florida. On May 28th I entered into a contract with a realtor who said he had an investor who wanted to buy my home, all I needed to do was sign a contract with this realtor. Since I was looking to sell my home at that time anyway and was just looking for a realtor, and because he told me he had a buyer already, I signed the contract. The home was listed in the MSL as per the rules of the state within 72 hours and as it turned out, I never heard about the "investor" again. The home sold and the sales contract was signed on June 15th, closing was set for July 15th. There were some problems with the appraisal and not getting it up as high as the selling price of the home, but I was told by my realtor, not to worry, they would do all that they could for me. I moved out of the home the beginning of July since I was able to find another place to move and I knew I would need to be out by the 15th. On July 11th I was told by my realtor the the deal fell thru and they were putting the house back on the market. It sold again and a new contract was signed on July 14th with the stipulation that an appraisal be done within 5 business days. The appraisal was done and we agreed on a much lower price. The new closing was set for August 15th. Today! I never heard from the realtor nor the title company so I contacted my realtor on 8/5. I was told there was no problems but that there were no guarentees either in real estate. My mortgage company contacted me on 8/6 as I hadn't made a mortgage payment in several months, (hard luck story-not getting into), which is why the home was being sold in the first place and my realtor knew about the situation. In any case, I found out the mortgage company had not even been contacted for the payoff, not even in July from the 1st contract, and I was told it takes 5 to 7 business days to get a payoff. I thought this was strange since I was told about the first deal falling thru just 3 days before closing--why was the payoff not requested for the 1st closing and how long had my realtor known the deal fell thru?? I let it go since my main concern was now getting thru this closing. On 8/8 I took the payoff directly to the title company, as I was able to get it on line right away since I had requested it back in May, the day I signed the sales contract with the realtor. When I was at the title company, they could not even find my file!!! This was just 1 week before closing! I called my realtor on Tuesday and was assured there were no problems, and that they (my realtor) had contacted the title company and closing was still set for today. By Thrusday 8/11, I still had not heard from the title company about the time of the closing. So I called them.....notice I am the one doing all the calling and getting this information, no one is calling me to let me know what is going on. So I talk to this woman at the title agency who tells me she is going to call the buyers loan company and she will call me right back. Two hours later I haven't heard back, so I call the realtor and leave a message. An hour later I hear from the title company. The buyers loan company wants to put the closing off until the 19th. Now, since I have lost my job on 8/5 and have no money, and I have a signed contacted stating the closing is set for the 15th, I told the woman from the title company that was not good enough, the closing has to go thru on the 15th. By this time it is 4:30 in the afternoon. I call the realtor who checks on this and I get a call back saying I was given wrong information, the closing is still going thru on the 15th. I waited all morning on Friday to hear about the closing time but never got a call. When I called the title company I was told the buyers lender needed an extention again. I called my realtor and left a message. No return call....I called again, by this time it is 5:20pm on Friday afternoon. I finally get to speak with the realtor who tells me the lender needed a form from Social Securty from the buyer...I stated that they had 30 days to get this form and that this was very upsetting to me as he (the realtor) knew what I was up against, and that this closing had to go thru 8/15, today. It is now 11:00 am here in Florida on Monday 8/15 and I have not heard one word from my realtor, nor the title company so I have no idea now if the home will close today or if it ever will! My mortgage company has told me they are close to starting forclosure on the home and I'm afraid I am going to lose everything. My question is, Do I have a breach of contract situation and if so, I do I do about it? Sorry this is so long but I wanted to give as much information as I thought might be needed in order to get a reply.

[HomeGuru]

Originally Posted by Brendabeaty

I live in Florida. On May 28th I entered into a contract with a realtor who said he had an investor who wanted to buy my home, all I needed to do was sign a contract with this realtor. Since I was looking to sell my home at that time anyway and was just looking for a realtor, and because he told me he had a buyer already, I signed the contract. The home was listed in the MSL as per the rules of the state within 72 hours and as it turned out, I never heard about the "investor" again. The home sold and the sales contract was signed on June 15th, closing was set for July 15th. There were some problems with the appraisal and not getting it up as high as the selling price of the home, but I was told by my realtor, not to worry, they would do all that they could for me. I moved out of the home the beginning of July since I was able to find another place to move and I knew I would need to be out by the 15th. On July 11th I was told by my realtor the the deal fell thru and they were putting the house back on the market. It sold again and a new contract was signed on July 14th with the stipulation that an appraisal be done within 5 business days. The appraisal was done and we agreed on a much lower price. The new closing was set for August 15th. Today! I never heard from the realtor nor the title company so I contacted my realtor on 8/5. I was told there was no problems but that there were no guarentees either in real estate. My mortgage company contacted me on 8/6 as I hadn't made a mortgage payment in several months, (hard luck story-not getting into), which is why the home was being sold in the first place and my realtor knew about the situation. In any case, I found out the mortgage company had not even been contacted for the payoff, not even in July from the 1st contract, and I was told it takes 5 to 7 business days to get a payoff. I thought this was strange since I was told about the first deal falling thru just 3 days before closing--why was the payoff not requested for the 1st closing and how long had my realtor known the deal fell thru?? I let it go since my main concern was now getting thru this closing. On 8/8 I took the payoff directly to the title company, as I was able to get it on line right away since I had requested it back in May, the day I signed the sales contract with the realtor. When I was at the title company, they could not even find my file!!! This was just 1 week before closing! I called my realtor on Tuesday and was assured there were no problems, and that they (my realtor) had contacted the title company and closing was still set for today. By Thrusday 8/11, I still had not heard from the title company about the time of the closing. So I called them.....notice I am the one doing all the calling and getting this information, no one is calling me to let me know what is going on. So I talk to this woman at the title agency who tells me she is going to call the buyers loan company and she will call me right back. Two hours later I haven't heard back, so I call the realtor and leave a message. An hour later I hear from the title company. The buyers loan company wants to put the closing off until the 19th. Now, since I have lost my job on 8/5 and have no money, and I have a signed contacted stating the closing is set for the 15th, I told the woman from the title company that was not good enough, the closing has to go thru on the 15th. By this time it is 4:30 in the afternoon. I call the realtor who checks on this and I get a call back saying I was given wrong information, the closing is still going thru on the 15th. I waited all morning on Friday to hear about the closing time but never got a call. When I called the title company I was told the buyers lender needed an extention again. I called my realtor and left a message. No return call....I called again, by this time it is 5:20pm on Friday afternoon. I finally get to speak with the realtor who tells me the lender needed a form from Social Securty from the buyer...I stated that they had 30 days to get this form and that this was very upsetting to me as he (the realtor) knew what I was up against, and that this closing had to go thru 8/15, today. It is now 11:00 am here in Florida on Monday 8/15 and I have not heard one word from my realtor, nor the title company so I have no idea now if the home will close today or if it ever will! My mortgage company has told me they are close to starting forclosure on the home and I'm afraid I am going to lose everything. My question is, Do I have a breach of contract situation and if so, I do I do about it? Sorry this is so long but I wanted to give as much information as I thought might be needed in order to get a reply.

**A: post too long.

[Brendabeaty]

I did say I was sorry for it being so long. Short version....signes sales contract was for closing on August 15th. Buyers lender had 30 days to get loan documents together.....now they are asking for add'l time. Is this breach of contract?

[reyrey]

Have a attorney look at your contract with real estate comp.

breach of contract
n. failing to perform any term of a contract, written or oral, without a legitimate legal excuse. This may include not completing a job, not paying in full or on time, failure to deliver all the goods, substituting inferior or significantly different goods, not providing a bond when required, being late without excuse, or any act which shows the party will not complete the work ("anticipatory breach"). Breach of contract is one of the most common causes of law suits for damages and/or court-ordered "specific performance" of the contract

[HomeGuru]

Originally Posted by Brendabeaty

I did say I was sorry for it being so long. Short version....signes sales contract was for closing on August 15th. Buyers lender had 30 days to get loan documents together.....now they are asking for add'l time. Is this breach of contract?

**A: post word for word exactly how the contingency clause is stated in the contract.

[Brendabeaty]

Thank you so much for your help. I have decided that I will seek the advice of an lawyer since the excuse I have been given is that the loan application for the buyer is sitting on the underwriters desk. To me, this does not appear to be a legal reason for not closing on time. I have also just found out that now the title company doesn't think the closing is going to be until next Monday the 22nd!

[HomeGuru]

well?????????????

Originally Posted by HomeGuru

**A: post word for word exactly how the contingency clause is stated in the contract.

[Brendabeaty]

Well I don't see anything that says contingency clause on the "Exclusive right to sell listing agreement". However this is a "special clauses" section but all it says is cash/conventional financing.
On the "contract for sale and purchase" there is nothing that says contingency clause either. There is a section "VI. Closing Date: This transaction shall be closed and the closing documents delivered on August 15, 2005 ("Closing"), unless modified by other provisions of the Contract. If Buyer is unable to obtain Hazard, Wind, Flood, or Homeowners Insurance at a reasonable rate due to extreme weather conditions, Buyer may delay Closing for up to 5 days after such coverage becomes available."
Since I work in the insurance industry I understand this, and there has been no reason for the buyer to be able to purchase insurance due to the weather.
There is also another section that indicates I am selling the house "AS IS".
Is this the information you are looking for??

[PghREA]

So, what do you want to do? - Hire an attorney and sue for breech of contract, argue about who gets the hand money, and finally put the home back on the market and wait until you get another buyer. Personally, I would grant the week extension and close on August 22.

[Brendabeaty]

I think I have found something else in the "contract for sale and purchase" under "Financing" section b states "This contract is contigent on Buyer obtianing approval of a loan ("Loan Approval") with _____ days (if blank, than 30 days) after Effective Date ("Loan Approval Date") for (CHECK ONLY ONE): {nothing is checked here, by the way} a fixed; an adjustable; or a fixed or adjustable rate laon, in the princial amout of $_____________{I left this blank here but it is filled in on contact}, at an initial interest rate not to exceed prefered %, discount and origination fees not to exceed prefered % of princiapl amount, and for a term of 30 years, Buyers will make application within __________ days (if blank, then 5 days) after Effective Date. Buyer shall use reasonable dilligence to; obtain Loan Approval and notify Seller in writing of Loan Approval by Loan Approval Date; satisfy terms and conditions of the Loan Approval; and close the loan. Loan Approval which requires a condition related to the sale of other property shall not be deemed Loan Approval for purposes of this subparagraph. Buyer shall pay all loan expenses. If Buyer does not deliver written notice to Seller by Loan Approval Date stating Buyer has either obtained Loan Approval or waived this financing contingency, then either party may cancel this Contract by delivering written notice ("Cancellation Notice") to the other, not later than seven (7) days prior to Closing. Seller's Cancellation Notice must state that Buyer has three (3) days to deliver to Seller written notice waiving this financing contigency. If Buyers has used due diligency and has not obtained Loan Approval before cancellation as provided about, Buyer shall be refunded the deposit(s). Unless this financing contigency has been waived, this Contract shall remain subject to the satisfaction, by Closing, of those conditions of Loan Approval related to the Property.

[jnazareno]

Originally Posted by Brendabeaty

I did say I was sorry for it being so long. Short version....signes sales contract was for closing on August 15th. Buyers lender had 30 days to get loan documents together.....now they are asking for add'l time. Is this breach of contract?

depends on the Contract..some lenders require addt time to setup
things..you can grant them the extra time but make sure
to put in in writing and for how long.