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How binding is a real estate contract when all agreements have been cleared up to three days before close of escrow.

Asked over 2 years ago - Phoenix, AZ

All agreements were completed. Real money was spent and moving cost were incurred and lost with rental agreements and storage fees. Poor me stories are being spread by buyer to try and escape the final close of the escrow sale. Do we have a binding contract? Or can they really walk away untouched?

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Attorney answers (2)

Pamela Koslyn

Reputation Level 20

Answered over 2 years ago. Business Attorney in Los Angeles, CA.

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Real estate contracts often provide for a nonrefundable earnest money deposit by the buyer, and there are also often liquidated damages and legal fees clauses benefitting the party willing to complete the deal. Without you disclosing any of the specifics of your agreements, it is difficult to respond to your query, so it would be best if you hired a qualified real estate lawyer in your state to review your particular agreement and advose you of your rights and remedies.

Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship

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Keenan M. Post

Reputation Level 14

Answered over 2 years ago. Estate Planning Attorney in Shawnee Mission, KS.

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I generally agree with the first question and would add that if the deal does not close you may have an additional claim for damages equal to the difference between the contract sales price and a later (new) contract sales price. I would make all efforts to keep the buyer in contract b/c as you likely know it is difficult to get real estate sold.

LEGAL DISCLAIMER
Mr. Post is licensed to practice law in KS and MO. The response herein is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply unsuitable. Mr. Post strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received.

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