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Contract question

1,792 Views | 13 Replies | Last: 6 yr ago by Copa515
Copa515
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AG
I signed a contingency contract to purchase land with a older house. The contingency was that I sell my house by a certain date. I closed on my house within the time required and I am ready to close on the land. The contract said that we would close on his property by July 16th. However, yesterday the seller emailed me and says that he doesn't have all of his things out and he will need at least until the end of July (probably longer) to close. My question is what options do I have. This is a significant inconvenience for me as the house needs quite a few repairs that I was planning on doing myself but with a later closing date I am going to be stuck with paying someone else to do it. I really want to purchase this land and I am not looking to get out of the contract but I would like to know what my options are.
gig em 02
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If it were me at the very least I would close and do a lease back, doesn't completely solve the problem but makes sure he isn't holding out for a better offer
07&09Ag
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Agree with above. It also provides motive for him to get his stuff out as he is now paying for it to be there. Also puts a little in your pocket should you have to pay someone else.

Every contract is unique, but likely your only true recourse per the contract is to cancel the contract and get your earnest money back
SteveBott
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AG
Agree with 02. At least you own the property and become the landlord. Also ask if you can have limited access to do some small repairs
dallasiteinsa02
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You can sue to enforce the contract and force him to sell including legal fees and damages for the loss of use if the property. I would rather delay the closing by amending the contract than leasing it back to him. I know it is common but he could do damage to the property, be injured on the property, or have to be evicted. The lease back scenario was designed when the cash is needed for the seller to close on their future Residence. That is not the case it sounds.
Agilaw
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AG
Copa: Best to see contract to review options. Let me know if you would like to discuss.
Diggity
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AG
I don't think you can sue for specific performance and monetary damages. It's one or the other. Specific performance is very tough in texas from what I've heard. Judges don't like to force people to buy or sell a home.
dpryor
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AG
Contract amendment with a lease-back is your best option. Going ahead with closing and transfer of title puts you in a much better position legally. Up to you whether or not you want to charge for the time he is leasing to cover the additional costs for repair. He will be much more likely to agree to the lease-back if there is no charge to him. Since he has indicated he could be out by end of July, I would offer no charge up to that date, and then a hefty per day amount after that date for holdover. It gives him incentive to get out or face a hefty penalty. You do have the option for suing for specific performance of the contract, though. You might want to speak to a real estate lawyer to at least know your options and what it would take to go that route.
Copp
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Often times with these transactions we close and do a lease back. However, we require 5k of the proceeds to be held in escrow for him to rent the house back from you. People move fast when you are still holding 5k of their money. If not, at least file a memorandum of contract on the property so it clouds title to ensure he is not trying to buy time to sell to someone else.

This is not legal advice, just what we have done with properties in the past with sellers that did not live up to their end of the bargain
DallasAggie0
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Diggity said:

I don't think you can sue for specific performance and monetary damages. It's one or the other. Specific performance is very tough in texas from what I've heard. Judges don't like to force people to buy or sell a home.
I actually put in an offer over the weekend and my agent lined out that area of the contract with specific performance. The listing agent came back and said he couldn't do that, but as a contract is between a buyer/seller, I'm sure that you can.
Diggity
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AG
The buyer and seller can agree to whatever changes they like. The agents just can't make or suggest the changes (unless they're attorneys).

I would think specific performance would still be a remedy even if you strike through that section of the contract though. It's more of an FYI as far as the remedies available to the buyer and/or seller. As mentioned before, it's a pretty rare thing in Texas and I've only heard of it being applied in extraordinarily cases.
histag10
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AG
Who sets a property sale to close on a Sunday?
Copa515
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AG
I meant to say the 14th.

Thanks everyone for the input. I ended up agreeing to give him another month for $5000 in closing costs, so hopefully it all works out.
histag10
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AG
I'm hoping you had that added in writing and signed as an amendment to the buy-sell.
Copa515
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AG
Yep, I did.
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