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Oct 24, 2023 · What happens when the sale of a house doesn't work out? In some cases, you as a home seller can take legal action if a buyer refuses to complete a sale. Limitations as to what you can do are typically written into the sales agreement itself, and probably narrow your options, so read the contract carefully and follow the steps below, including:
- Ilona Bray
- Preliminary Steps
- Specific Performance
- What Happens If A Seller Fails to Comply with An Order For Specific Performance?
- Advising A Seller
Where the contract incorporates the Standard Conditions of Sale that form part of almost all residential sale contracts, the concept of a "notice to complete" will apply. This means that at any time on or after the contractual completion date, a party who is "ready willing and able to complete" can give the other a notice to complete. The effect of...
If it becomes clear that the seller is not going to voluntarily complete a contract, the buyer can apply to court for specific performance at the expiry of the period of the notice to complete. Specific performance is an equitable remedy, which means that its award is discretionary, and as such, it is not available as of right. The court will norma...
There may be practical obstacles in enforcing against a particularly determined seller who may simply refuse to give up a property despite a court order being in place. If an order is made but the seller fails to comply with it, the buyer may apply for further enforcement action to be taken by the court. An order for specific performance should con...
When acting for a buyer on a property purchase, it is a given that careful advice will be provided regarding failure to complete the purchase in accordance with the contract. When acting for a seller, the prospect of default is perhaps more easily overlooked, particularly in a relatively weak market where it is easy to assume that the seller will b...
Jul 20, 2023 · Breach of contract issues can significantly impact real estate transactions, causing disputes and potential financial losses for both buyers and sellers. Understanding the common breach of contract issues discussed in this blog post and seeking legal advice when necessary is essential for protecting one’s interests and ensuring a successful real estate transaction.
Feb 13, 2024 · What to Do If a Buyer Gets Cold Feet (Seller’s Case) Sellers facing buyers with cold feet must start by examining if the purchase contract provides any outs or cancellation provisions. If no legitamate exits can be discovered, sellers can demand the buyer’s close escrow as originally agreed, potentially through progressively aggressive demand letters or mediation before suing.
Sep 13, 2022 · The buyer and seller signed an agreement on Aug. 18, 2021, with an agreed-upon purchase price of $340,000 for a co-operative unit. In advance of closing, the buyer, Warner, fulfilled all the conditions, which included financing and co-op board approval. At the seller’s request the closing date was extended twice before settling on Nov. 22, 2021.
Jul 16, 2023 · Breach of Contract: The seller’s failure to close also constitutes a breach of contract. The buyer may have legal remedies available, such as seeking damages for any financial losses incurred due to the seller’s breach. The buyer may also be entitled to specific performance if they prefer to compel the seller to complete the sale.
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Sep 18, 2023 · In some cases, the buyer may be able to sue the seller for specific performance, which is a court order that forces the seller to sell the property to the buyer. However, this can be a lengthy and expensive process. Learn more: Breach of Real Estate Contract By Seller. What Happens In a Real Estate Contract When a Seller Doesnt Want to Sell?
