Long story short, the seller has signed the contracts and all addendum's. I get to the closing table last night and sign all the paperwork and get an email from the seller stating he is backing out of the deal. Final day on the contract is tomorrow. All my paperwork is signed.
At this point, I'm out $1600 for inspections and appraisals on a 4-unit. The deal itself felt difficult with access issues to the apartment, two inspections (due to access issues), two appraisals (due to access issues), and some clerical error's during the closing (which were corrected).
Is it worth trying to push this deal through? If I decide not to push this deal through is it worth trying to recoup the $1600 in out of pocket expenses since he is in breach of contract? Do I have enough time if the contract expires tomorrow?
The contract does not expire tomorrow if you are ready, willing, and able to close. The seller is still obligated to you to sell. You can file something in the land records as evidence of your contract to cloud the title. An attorney can file a specific performance suit for a few hundred bucks.
That might not be worth persuing if the seller is stuborn, however it will keep him from sellig to someone else. Do you know why he does not want to sell now? If he simply found a buyer to pay more, I would stick it to him. Otherwise there will be other deals and unless this is an absolute fantastic deal it may not be worth fighting over.
He’s been very vague in correspondence and places blame on my team but not me. He also said there are things that he didn’t agree to which doesn’t make sense if he signed the contract.
We don’t know what your contract says about default on the seller’s part..
He can not back up out of contract when it's time to close - you can take him to the court for "specific performance".
You have the right to get out of contract after the inspection done and get your EM back if any was deposited. Seller can't - you signed the closing docs before the date stated in Purchase Agreement - so he has to.
The PA is a binding agreement and you can sue him for damages.
@Andy Milby seek out some advice from a local real estate attorney about suing for specific performance. Also you can inexpensively go to small claims court and at least try to get your $1600 back.
@Andy Milby If you are at all concerned the seller may have another offer or try to sell to someone else, you have the right to record your contract on the property. Contact a local real estate attorney and they can take care of it. It will create a cloud on title preventing the seller from selling or refinancing the property without a release from you. It also may force the hand of the seller to go through with the closing.