Enforcing a purchase agreement, seller backing out.

[Robert Rappold]

Hello, Does anyone have experience enforcing a PA via arbitration or law suit for specific performance? Wondering if arbitration is the way to go? Seller backed out of the deal last minute leaving me high and dry after several hundreds of dollars and time invested. Any advice or experience you can share would be appreciated. Thanks in advance, Rob

[Drew Shirley]

This is not legal advice and I'm not your lawyer, etc.

You have to consider the legalities and the practicalities. Legally, you're right. The seller breached the contract and you have a cause of action against him. Legally, you would be entitled to sue him and recover your damages and, if your contract or state allows it, your attorney's fees.

Practically speaking, are you willing to hire an attorney at $200+ per hour to chase a few hundred dollars and the possibility that you will get your attorney's fees? Are you willing to sue the seller in small claims court and spend 50+ hours chasing these hundreds of dollars?

I recently represented a landlord in a security deposit dispute with a tenant. The two parties were about $1,200 apart and my client spent more than $10,000 chasing that $1,200 based on the "principle of the matter." Finally, after almost a year, my client realized he was "throwing good money after bad" and settled the case. 

This doesn't even begin to account for all the time spent and the high levels of stress that are inevitable when you're involved in litigation.

I always tell my clients I don't want to turn away money, but there are times when it's best to just take a small loss and move on to the next deal.