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If i pull out of a texas real estate contract after the option period, but before closing, do I lose only my earnest or can i

Austin, TX |

also be sued for specific performance on the contract?

Attorney Answers 3

Posted

It depends on what the contract says. The remedy of specific performance is generally available to either the purchaser or the seller upon breach of a contract for the sale of real property. The Texas Real Estate Commission One To Four Family Residential Contract provides that either the Seller or the Buyer may enforce specific performance but the contract can be modified to remove the remedy of specific performance. You need to look to the terms of your contract.

Legal disclaimer: John Bonica is licensed to practice law only in Texas. His response is not legal advice and does not create an attorney/client relationship. The response is only intended to provide general information. The question may not include significant and important facts that would change the response. You should confer with a local attorney for competent legal advice.

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Posted

If you had a financing addendum or title commitment objections, you may have an excuse not to close or pay the earnest money. You need to make sure that you meet all of your deadlines. Talk to an attorney. Most agents don't understand some of the issues and all want you to close so they get paid.

This post is for discussion purposes only and is not intended as legal advice. This post does not create an attorney-client relationship. If you are interested in retaining counsel, you may contact The Law Office of Daniel O'Brien, P.C. at 512-615-3580 to discuss further.

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Posted

I agree with Mr. Bonica - it depends on what the contract says.

If this answer was helpful, please mark it as helpful or as a best answer. This answer is for general education purposes only. It neither creates an attorney-client relationship nor provides legal guidance or advice. The answer is based on the limited information provided and the answer might be different had additional information been provided. You should consult an attorney.

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1 comment

Michael T Millar

Michael T Millar

Posted

Generally, a buyer cannot be ordered to purchase a property (i.e., specific performance). Instead, the buyer may be ordered to pay additional damages such as carrying costs until another buyer is found.

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