Investor · Charlotte, NC · Member since 2011 · 58 posts · 9 votes
I've run into this general scenario about three times in the past 12 months, and it is frustrating to say the least. Basic scenario is: seller responds to marketing, I go meet seller at property, get contract to buy the property, send docs to attorney, seller stops returning my calls or answering them.
Basically they disappear AFTER signing contract and agreeing to sell me the property (I'm not talking about a lead, this person has actually signed a contract to sell). I'm trying to figure out what is going wrong, why, and how/if I can fix it in the future. I'm not sure if they just freeze up and get afraid about selling or if I put them off somehow.
Has anyone else run into this? What did you do or what do you recommend I do? How do you factor this into your business model?
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
12y
Can't recall a seller disappearing, they may not answer calls.
Two options; walk away or sue them for performance. There could be a settlement before you sue them, might try that as to expenses and damages agreed to in the contract, there are damages recited for the seller in your contract aren't there? :)
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
12y
Can't recall a seller disappearing, they may not answer calls.
Two options; walk away or sue them for performance. There could be a settlement before you sue them, might try that as to expenses and damages agreed to in the contract, there are damages recited for the seller in your contract aren't there? :)
Investor · Dallas, TX · Member since 2009 · 718 posts · 913 votes
12y
The reason they are likely disappearing is that they have found a better offer or don't want to sell anymore. (More likely the former.) Not much I'm aware of to do to prevent this other than staying involved in the process. At the end of the day, though, many people are just cowards and will put their heads in the sand when they don't want to do something, like honoring a contract they willingly signed.
@Bill Gulley is right. Those are your only two options. If there's enough at stake, it might make sense to get a lawyer to file the lawsuit. A lot of times things shake loose with a lawsuit on file.
Down here in Texas, when you file a lawsuit, you can also file a lis pendens, which is basically a notice that the property is subject to a lawsuit. It clouds title making it pretty much impossible to sell the property. Pretty much forces the seller to deal with you. (I haven't looked but I'll bet other states have similar procedures.) These are pretty much pressure points to force the seller to deal with you. Again, if there's not that much at stake, I'd just walk away.
Investor · Dallas, TX · Member since 2009 · 718 posts · 913 votes
12y
As an aside, I did have this happen to me once. Signed a contract and then the lady disappeared. I'm a lawyer and I could have easily sued for specific performance (would have cost me a few hundred bucks). At the end of the day, after further consideration, I just let it go. It wasn't worth the time, and, after further reflection, I wasn't sure the seller was all there mentally. I didn't think much of her mannerisms when I was locking the property down, but afterwards thinking about it, she likely had something wrong with her. I probably should have never entered into the contract in the first place, and I certainly wasn't going to pursue it. (It would have been wrong from both a moral and legal standpoint.)
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
12y
Great point John, I don't know of any state being different in that respect to Texas, although filling the les pendens and not filing suit might be an issue.
You can also file a notice of sale affidavit that could stop another sale as a title company wouldn't insure clear title.
Might want to think about filing such a notice as it depends on what transaction you're contemplating. :)
Can't recall a seller disappearing, they may not answer calls.
Two options; walk away or sue them for performance. There could be a settlement before you sue them, might try that as to expenses and damages agreed to in the contract, there are damages recited for the seller in your contract aren't there? :)
Can you please explain what you use in your contract with respect to this issue of 'expenses and damages recited for the seller'