Seller Changed Mind- Cloud Title/Place Lien?

Question

Have a purchase contract signed on December 11, 2017 with a close date of January 2, 2018 for a property in Portland, Multnomah County. Seller decided to back out of the deal (this was a private party transaction, no real estate agents involved) and no longer wants to sell her home.

What recourse do I have as a buyer to ensure she isn't going to take a better deal from another investor and leave me hanging? Is there a way to cloud the title or file a lien in Oregon?

Would appreciate any insights on how to handle this situation. Thank you!

Karen Margrave · Answer

Walk away. I doubt the profit in the house is worth what it will cost to defend in court. She changed her mind. It happens. How much real money are you out?

Cara Lonsdale · Answer

If you have a contract, you need to issue the Seller a CURE Notice.  The CURE Notice puts the Seller on notice that they have not performed to the contract.  Something to note:  YOU need to have all of your ducks in a row....in other words, you can't be in breach too.

Is your contract going through a title company?  Submit your CURE Notice to the title company so that Title is involved.  Then call your attorney (not just any attorney, call a RE attorney).

Bob Floss II · Answer

Record the contract on the property.  If the seller goes to sell the property to another party, your contact will show up and create a cloud on title.

You can look at suing for specific performance but know that this process can take a very long time.  You'll also want to consult with local counsel as some jurisdictions avoid awarding specific performance as a remedy and will default to awarding damages.

Jimmy Dudley · Answer

If you have a signed contract you should contact an attorney and sue for specific performance. Don't worry about clouding the title or filing a lien get a judge to force them to abide by their contract.