Title/Legal How to encumber seller’s title? Help please

Seattle, Washington
Buying & Selling Real Estate
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Title/Legal How to encumber seller’s title? Help please

Bob McCausland
Member since 2019 · 14 posts · 0 votes

We were recent buyers on a listed property. We met all of our conditions on the agreed P&S. Seller did not complete any of theirs.
Seller and agent let our agreement expire- then instructed listing agent to increase the price and remove all sellers conditions- all of which are doable.  Listing agent just relisted - followed clients direction. 
This has been a clear breach of contract. 
Aside from filing a State complaint, and a full blown lawsuit filing,  what claim on their title against a future sale on this property do I file?  

Ty! 

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Brian Blosser
Real Estate Agent · Burbank, CA · Member since 2021 · 38 posts · 26 votes
4y
Quote from @Bob McCausland:

We were recent buyers on a listed property. We met all of our conditions on the agreed P&S. Seller did not complete any of theirs.
Seller and agent let our agreement expire- then instructed listing agent to increase the price and remove all sellers conditions- all of which are doable.  Listing agent just relisted - followed clients direction. 
This has been a clear breach of contract. 
Aside from filing a State complaint, and a full blown lawsuit filing,  what claim on their title against a future sale on this property do I file?  

Ty! 


 I would reach out to a local Real Estate Attorney and consult them. 

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y

    @Bob McCausland

    What is your agent saying?

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  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    4y

    These things depend upon precise contract language. Did the settlement date come and go without tender or a demand and was time of the essence? It's possible this ship has sailed.

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  • Bob McCausland
    OP
    Member since 2019 · 14 posts · 0 votes
    4y
    Quote from @Chris Seveney:

    @Bob McCausland

    What is your agent saying?


    0Reply
  • Bob McCausland
    OP
    Member since 2019 · 14 posts · 0 votes
    4y
    Quote from @Bob McCausland:
    Quote from @Chris Seveney:

    @Bob McCausland

    What is your agent saying?

    I did not have an agent- the listing agent was getting both sides- yes, she represents the seller.  



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  • Bob McCausland
    OP
    Member since 2019 · 14 posts · 0 votes
    4y
    Quote from @Tom Gimer:

    These things depend upon precise contract language. Did the settlement date come and go without tender or a demand and was time of the essence? It's possible this ship has sailed.


    0Reply
  • Bob McCausland
    OP
    Member since 2019 · 14 posts · 0 votes
    4y
    Quote from @Bob McCausland:
    Quote from @Tom Gimer:

    These things depend upon precise contract language. Did the settlement date come and go without tender or a demand and was time of the essence? It's possible this ship has sailed.



    0Reply
  • Bob McCausland
    OP
    Member since 2019 · 14 posts · 0 votes
    4y
    Quote from @Bob McCausland:
    Quote from @Bob McCausland:
    Quote from @Tom Gimer:

    These things depend upon precise contract language. Did the settlement date come and go without tender or a demand and was time of the essence? It's possible this ship has sailed.




    0Reply
  • Bob McCausland
    OP
    Member since 2019 · 14 posts · 0 votes
    4y

    Thank you Tom- Title and Escrow (a national company) was kept in the loop, informed and understood the seller did not do their part- they agreed with this- said they will keep the file open. They still have my Ernest money- but also it’s clear we are expired at this point.  

    It cannot be legal for a seller to ‘change their mind’, not perform,  then relist at terms benefiting them…. If allowed, it would be done regularly in an increasing market.   

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  • Brian Blosser
    Real Estate Agent · Burbank, CA · Member since 2021 · 38 posts · 26 votes
    4y
    Quote from @Bob McCausland:

    We were recent buyers on a listed property. We met all of our conditions on the agreed P&S. Seller did not complete any of theirs.
    Seller and agent let our agreement expire- then instructed listing agent to increase the price and remove all sellers conditions- all of which are doable.  Listing agent just relisted - followed clients direction. 
    This has been a clear breach of contract. 
    Aside from filing a State complaint, and a full blown lawsuit filing,  what claim on their title against a future sale on this property do I file?  

    Ty! 


     I would reach out to a local Real Estate Attorney and consult them. 

    1Reply
  • Bob McCausland
    OP
    Member since 2019 · 14 posts · 0 votes
    4y

    I am not willing to cave and re-up with the latest listing-  the seller conditions were clearing all contents and confirming utilities were legal and in working order- water, septic, power.  

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  • Michael King
    Rental Property Investor · Navarre, FL · Member since 2019 · 913 posts · 640 votes
    4y

    I was the seller in a similar situation. I was tired of the buyer's "fix this, fix that." I decided if I was going to fix everything the buyer wanted, I would keep the property for myself. When the last counter came in, I didn't respond and let it expire. The buyer may have been mad, but the law allowed me to do it. This was in Missouri. 

    1Reply
  • Bob McCausland
    OP
    Member since 2019 · 14 posts · 0 votes
    4y

    Thank you and I understand. For clarification, nothing was added or requested after the initial P&S. Terms were simple-proof of utilities (by the seller), connect the city water, and clear out their contents. Water is connected through the neighbors house meter. Septic- they could not locate the tank or Drain field.

    and then..they relisted at a higher price 

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  • Bob McCausland
    OP
    Member since 2019 · 14 posts · 0 votes
    4y
    Quote from @Bob McCausland:

    Thank you and I understand. For clarification, nothing was added or requested after the initial P&S. Terms were simple-proof of utilities (by the seller), connect the city water, and clear out their contents. Water is connected through the neighbors house meter. Septic- they could not locate the tank or Drain field.

    and then..they relisted at a higher price 


    0Reply
  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    4y

    @Bob McCausland My point was you need to take certain action to preserve a right to pursue specific performance. You'll want to consult with a local real estate litigator, but my bet is if you didn't show up at closing and tender funds to the settlement agent, you may not be successful because you let the contract expire. A demand letter from an attorney should have been sent before that occurred but who knows, maybe if sent now the seller will feel pressure and come around.

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  • Sergey A. Petrov
    Real Estate Consultant · Seattle, WA · Member since 2022 · 1k+ posts · 784 votes
    4y

    The agreement doesn’t just expire. Are you saying the closing date came and went and closing did not occur. You also mentioned you, as the buyer, met all conditions but the seller didn’t so the property wasn’t even ready for closing as required by the contract?

    I don’t know that you can just encumber someone’s property for failure to perform under the contract. You could sue to force performance but that’ll be expensive. 
    What it sounds like is that you found a very good deal and the property was under priced. The Seller probably realized that as well. Or the seller realized they agreed to do something that was too much if a headache, too expensive, something else. On the surface that sounds like bad faith. Not sure if there is more to the story. Move on to the next deal or sue to force performance. Filing a lawsuit won’t “encumber” the property but will “cloud” the title. There are work arounds for litigation on a property and the seller may still be able to sell and keep litigation active. I am not what monetary damages you’ll be able to claim. Sale price difference between what you would have paid and what it actually sells for to someone else? If that difference is a few hundred thousand the cost of the lawsuit may be justified 

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  • Matt Bishop
    Rental Property Investor · Dallas, TX · Member since 2020 · 161 posts · 88 votes
    4y

    @Bob McCausland, you are asking for legal advice from unqualified individuals. Get yourself a great real estate attorney and a great real estate agent. Your agent should already have this taken care of for you. Your agent can escalate it to their broker and their broker can have the in house legal team handle it. If your agent doesn't know all this and have all the resources to resolve this in your favor, you have the wrong agent. Find a true professional, the top producing agent at the best and largest, most respected and esteemed brokerage in town. You are playing for real, now and your future success depends on the professional relationships you form.

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  • Bob McCausland
    OP
    Member since 2019 · 14 posts · 0 votes
    4y
    Quote from @Tom Gimer:

    @Bob McCausland My point was you need to take certain action to preserve a right to pursue specific performance. You'll want to consult with a local real estate litigator, but my bet is if you didn't show up at closing and tender funds to the settlement agent, you may not be successful because you let the contract expire. A demand letter from an attorney should have been sent before that occurred but who knows, maybe if sent now the seller will feel pressure and come around.


    0Reply
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