Seller going through a divorce who is refusing to go to closing
Member since 2023 · 3 posts · 0 votes
Seller going through a divorce who is refusing to go to closing
6 Replies
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes3y
Quote from @Shelia Woods:
I alerted the closing attorney and the real estate agent that I would not participate in closing due to some issues with my divorce from the co-owner/spouse. Since then, the closing attorney and the real estate agent have done everything they can to push the sale through, including not disclosing what is happening to the potential buyer. I put in writing my intent not to go through with the sale, and they have sent countless emails with threats of me being sued and using words like a breach of contract which I am familiar with the process. At this time, I feel that I am being coerced and somewhat intimidated into completing the closing. I spoke to at least three attorneys who advised that until litigation takes place, there is little I can do because the closing attorney represents me-the same person I am having issues with who wanted to disclose to the buyer information that was more personal than general. What are my rights as part owner of the property, and what can I do to address how this situation was handled?
NOT AN ATTORNEY - but typically if you signed the purchase and sale agreement and agreed to sell, then the buyer could come back at you. If the issue is where the funds go, that seems to be very different issue that you and teh escrow company have and the buyer is not involved in that.
Get another attorneys opinion.
7e investments53 Reviews - 3ySasha MohammedPro MemberLender · Costa Mesa, CA · Member since 2018 · 337 posts · 245 votes
This is a tough situation, and i'm sorry you're going through it. If you do not sign the papers, I believe the only way anyone could force a sale is by court order. I would continue to consult with an attorney in your specific state (as the laws will differ state by state) and i recommend having an independent council outside of any other party in the transaction (whether it be the closing attorney or otherwise).
Wishing you the best of luck!
- Member since 2023 · 3 posts · 0 votes3y
One of the issues with locating an attorney is that they advised that I am not in litigation and that the closing attorney is supposed to be the person that is acting on my behalf; however, she has continued as if I have not disclosed "in writing" that I do not want to go further with the sale of my property. Today she sent an email advising that she informed the buyers that only one of us wanted to avoid going through with the sale. I am at a loss and do not know how to deal with any of this as I can not get legal representation until the buyers attempt to sue me, but I feel that this could have been alleviated if I could defer to separate counsel.
- Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes3y
@Shelia Woods I have been through this as an agent, representing a separated couple who were squabbling about who got how much money from the sale, due to…..whatever. Just understand, you and your spouse Both signed a contract to sell. The buyer, and your broker, have legitimate actions they could take against you. At a minimum, as to buyer, you’d have to of course return their EM and reimburse them for any fees they incurred to accomplish the purchase….inspection fees, loan application fees, appraisal, etc. They Could file a suit to enforce the contract, make you proceed with the sale….but that is unlikely due to the time and costs it take. No one can do anything for you except advise you of the legal ramifications….they can’t make them go away.
If you are open to it, and your spouse agrees…..you could proceed with the sale and have the title company hold all funds due to the two of you in an escrow account until you two sign an agreement as to how the funds will be divided or go to court and get a court order that divides the funds a certain way. I assume the issue here is how the proceeds will be divided between you two?
- Member since 2023 · 3 posts · 0 votes3y
Quote from @Wayne Brooks:
@Shelia Woods I have been through this as an agent, representing a separated couple who were squabbling about who got how much money from the sale, due to…..whatever. Just understand, you and your spouse Both signed a contract to sell. The buyer, and your broker, have legitimate actions they could take against you. At a minimum, as to buyer, you’d have to of course return their EM and reimburse them for any fees they incurred to accomplish the purchase….inspection fees, loan application fees, appraisal, etc. They Could file a suit to enforce the contract, make you proceed with the sale….but that is unlikely due to the time and costs it take. No one can do anything for you except advise you of the legal ramifications….they can’t make them go away.
If you are open to it, and your spouse agrees…..you could proceed with the sale and have the title company hold all funds due to the two of you in an escrow account until you two sign an agreement as to how the funds will be divided or go to court and get a court order that divides the funds a certain way. I assume the issue here is how the proceeds will be divided between you two?
@Wayne Brooks the money is not the issue. There are some other things that occurred. Although I sympathize with the buyer I also have to consider what is best for me in this situation and right now it is not to sale the home. There are significant things that have happened that led to this decision that can’t be disclosed on this forum. I want to be clear that this is not about a squabble. I sincerely hate that things happened this way but at this time cannot be prevented. Thank you for your feedback. It appears that preparing for litigation is my best course of action
- 3yTom GimerBusiness MemberDMV · Member since 2017 · 3k+ posts · 3k+ votes
Something isn't making sense here.
The closing attorney is not OP's divorce attorney. At most that attorney has been hired to give a title opinion or perhaps represent the sellers at the closing. If the sellers' interests no longer align, he or she needs to be informed of that and to plan for a dispute, not a closing.
If there is a pending or even contemplated divorce the attorney representing OP in connection with the divorce can step in and tell everybody to back off... there will be no closing... bring your lawsuits if you must, but you'll be wasting a year or more watching this shake out. Most buyers will wisely look to find another property.
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