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I have a home in Bullhead City AZ I am selling on owner contract. Buyers violated the contract what do I do?

Bullhead City, AZ |

June 2012 we went to a bank to notorize the contract. Before they signed it we talked it over and I asked them if they had any problems with the agreement. They said no and signed it. Their rent is due each month by the fifth. After they paid the 5000$ down payment I gave them 1 month to make their first payment. They paid in the middle of the month of July intending it to be the August payment. But did not send notice of its intent. However, every check came to us on the 20th of every month there after. I called them and explained the error. The buyers were suppose to buy insurance to cover the home loan in case. This was not done until I sent them a letter notifying them they have a penalty for not obtaining insurance. They finally obtained it. Is there any attorneys interested in this

Attorney Answers 1

Posted

To address the last part first, it sound like they got insurance but you had to remind them. Unless you were damaged by their failure (a claim arose while the home was uninsured, for example) this may bug you, but it is not an issue the courts will fix.

The wording of the contract controls the payments: if it clearly said $5000 down then a payment in July and monthly payments due on the 5th of each month thereafter, then I agree it sounds like they are behind one month. It will cost thousands to hire an attorney to prosecute a suit to recover that one month's payment: the court can award reasonable attorney's fees along with the missed payment and any contractual late fees or interest at the conclusion of the case if you win.

I wonder, and the judge will wonder, why you waited a year and a half. Breach of contract is enforceable up to 6 years, but if the defendants can show that you waived the breach, they would win and you would need to pay their attorney's fees.

The general advice above does not constitute an attorney-client relationship: you haven't hired me or given me confidential information by posting on this public forum, and my answer on this public forum does not constitute attorney-client advice.

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To fix an error. The contract did not start till June 2013. I had to write them a letter of demand in November which included a penalty and I asked them to make their payments at the beginning of the month not when they felt like it. Such as August payment we received on July 20th, Septembers payment August 19th, and so on. Each monthly payment I suppose to be either on the first through the 5th. Such as if October payment was made during the 1st through the 5th it counts as the monthly payment. If a payment is made prior to the month it would be considered as a payment towards the principal. Such the same way I pay my credit cards. If I don't pay Januarys payment on the first through the fifth or post marked on the 5th, then there are late fees. Knowing these guys have mental problems and collect SSD we figured there was a misunderstanding. So we call them when their check is late and remind them it is due at the beginning of the month as described in the contract. I do not want to lose them but it seems every time we call (my wife calls to see if the check was sent or if there is a problem we can work out) they both become hostile and argumentive to the point we have to close the call. Damages already existed after they moved in. The home was a smoker free home when we bought it. And they both smoke. They were warned prior to moving in they must have insurance and we explained if they do not obtain insurance we would and it would be added to their monthly payment. Thanks for your reply and interest in my issue.

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