Time of essence when seller doesnt perform

2 Replies

We went into contract on a house in October  and slated to close in December. Its February now and seller still hasnt performed. We have asked our lawyer to send him a TOE letter, and want to close end of this month. If the seller still doesnt close, what is  my legal recourse? What amount can I claim from the seller? I have put down 20K in deposit , spent for inspections, attorney,title , overlooked many other deals while this was under contract. The property is a 3-family and purchase price is 365K

How has the seller not performed? Are they refusing to show up to closing? Refusing to vacate the property?  Im imagining your contract has likely expired already? Your profile indicates you are a real estate agent...so you should know the avenues to pursue.

How is the seller delaying closing? I would imagine any delay/extension was reviewed and approved by all parties, correct? Other more experienced investors will chime in, but my thoughts are... the next time it doesn't close, don't allow an extension, get your EMD back and find another deal. Not sure how much you can claim from the seller for your other costs (title, attorney, etc) but if you are passing by other deals for this one, it might be worth cutting your losses and finding one of those other, hopefully smoother deals.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.