Seller breach of contract

2 Replies

Anybody have experience with dealing with a seller that refuses to sign final closing docs on a property and going through the legal process in TX. Back story: I have a 4 plex under contract for an FHA 203k loan that we have been working on for about 4 months now and I have about $5k in the deal for contractors, appraisals, inspections etc. I signed and wired my cash to close on Friday last week. Seller was supposed to sign on Saturday Loan was to fund on Monday. Seller is a Mexican National and as such is required to let IRS hold 15% of sales price for any tax problems until next tax year. Seller lied about signing and we are at Wednesday with my credit report going out of date tomorrow. Any advice would be appreciated. I feel like all the work on the 203k was enough for this, and it's super deflating to have the rug pulled from me right at the 1 yard line.

Originally posted by @Robert Johnson :

Anybody have experience with dealing with a seller that refuses to sign final closing docs on a property and going through the legal process in TX. Back story: I have a 4 plex under contract for an FHA 203k loan that we have been working on for about 4 months now and I have about $5k in the deal for contractors, appraisals, inspections etc. I signed and wired my cash to close on Friday last week. Seller was supposed to sign on Saturday Loan was to fund on Monday. Seller is a Mexican National and as such is required to let IRS hold 15% of sales price for any tax problems until next tax year. Seller lied about signing and we are at Wednesday with my credit report going out of date tomorrow. Any advice would be appreciated. I feel like all the work on the 203k was enough for this, and it's super deflating to have the rug pulled from me right at the 1 yard line.

 It looks like your agent willneed to contact his agent and get an explanation for you. I suspect you will need to talk to a local real estate attorney. 

@Robert Johnson
I’m guessing the purchase price is over $300k?  I believe there is an exemption for under $300k and if you will owner occupy, not sure how that applies to an owner occupied 4 plex though.
The seller’s agent needs to explain, or should have from the beginning, that the seller is going to have to do this whenever he sells it.