Seller's grasp of law is miniscule at best. The contracts to sell the home & to sell the furniture are separate. You can force S to close on the sale & can even get damages if closing is delayed by S's unilateral decision to cancel the walk-through. (You don't have to tell S that the delay worked in your favor!) The contract to buy the furniture is voidable by either party. The statute of frauds requires contracts for the sale of goods (furniture) to be in writing if the contract price is over $500. [CT Statutes, Sec. 42a-2-201] Either party can back out of a verbal contract over $500 for any reason.
Print out the law or xerox a copy at the library & send it to S with written notice that you're exercising your option to void the verbal contract, but still demand S close on schedule. Further inform S that any further delay in closing will cause you to sue S for damages. As to your rights under the contract, how the heck should we know? We can't read it from here!
If S doesn't close & you want to prevent S from selling to anyone else, record the purchase & sale contract on S's parcel number at the county recorder's office. That will cloud title & prevent any escrow company from issuing title insurance or approving financing on the house. You can then sue S for breach & demand specific performance, which you'll get. You'll also be reimbursed for your attorney fees & costs if the contract awards attorney fees to the prevailing party.
Here's the statute of frauds.
Sec. 42a-2-201. Formal requirements; statute of frauds.
(1) Except as otherwise provided in this section a contract for the sale of goods for the price of five hundred dollars or more is not enforceable by way of action or defense unless there is some writing sufficient to indicate that a contract for sale has been made between the parties and signed by the party against whom enforcement is sought or by his authorized agent or broker. A writing is not insufficient because it omits or incorrectly states a term agreed upon but the contract is not enforceable under this paragraph beyond the quantity of goods shown in such writing. (2) Between merchants if within a reasonable time a writing in confirmation of the contract and sufficient against the sender is received and the party receiving it has reason to know its contents, it satisfies the requirements of subsection (1) against such party unless written notice of objection to its contents is given within ten days after it is received. (3) A contract which does not satisfy the requirements of subsection (1) but which is valid in other respects is enforceable (a) if the goods are to be specially manufactured for the buyer and are not suitable for sale to others in the ordinary course of the seller's business and the seller, before notice of repudiation is received and under circumstances which reasonably indicate that the goods are for the buyer, has made either a substantial beginning of their manufacture or commitments for their procurement; or (b) if the party against whom enforcement is sought admits in his pleading, testimony or otherwise in court that a contract for sale was made, but the contract is not enforceable under this provision beyond the quantity of goods admitted; or (c) with respect to goods for which payment has been made and accepted or which have been received and accepted as provided by section 42a-2-606.
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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.
[This message has been edited by Tracey (edited July 16, 2000).]