All Forum Posts by: Ryan S.

Quote from @Steve K.:

Did you use the state-approved contract/ a contract that addresses the remedy for breach of contract and specific performance? 

Thanks for your insight. That makes sense. This is a very frustrating situation. I really want this property for so many reasons and don't just want to just walk away.

Yes. I used a Colorado state-approved contract. The contract states the below: 

20.2.1. Specific Performance, Damages or Both. Buyer may elect to treat this Contract as canceled, in which case all Earnest Money received hereunder will be returned to Buyer and Buyer may recover such damages as may be proper. Alternatively, in addition to the per diem in § 17 (Possession) for failure of Seller to timely deliver possession of the Property after Closing occurs, Buyer may elect to treat this Contract as being in full force and effect and Buyer has the right to specific performance or damages, or both.

22. MEDIATION. If a dispute arises relating to this Contract (whether prior to or after Closing) and is not resolved, the parties must first proceed, in good faith, to mediation. Mediation is a process in which the parties meet with an impartial person who helps to resolve the dispute informally and confidentially. Mediators cannot impose binding decisions. Before any mediated settlement is binding, the parties to the dispute must agree to the settlement, in writing. The parties will jointly appoint an acceptable mediator and will share equally in the cost of such mediation. The obligation to mediate, unless otherwise agreed, will terminate if the entire dispute is not resolved within thirty days of the date written notice requesting mediation is delivered by one party to the other at that party’s last known address (physical or electronic as provided in § 26). Nothing in this Section prohibits either party from filing a lawsuit and recording a lis pendens affecting the Property, before or after the date of written notice requesting mediation. This Section will not alter any date in this Contract, unless otherwise agreed.

Quote from @Chris Seveney:

Quote from @Ryan S.:

Quote from @Steve K.:

What makes the property unique and why can't you find a different property that meets your needs? The reason I ask is that specific performance is rarely granted as a remedy in my experience (not a lawyer, just do some transactions) unless a monetary reward isn't enough to make the buyer whole because the buyer truly can't find a different property to meet their needs. From what I have seen, the typical remedy is termination of the contract, refund of the EM deposit and all expenses incurred by the buyer during the failed transaction. Could be an uphill battle but good luck. 

This property is unique due to its layout and prime location. Most of the surrounding properties are one-story condos in the area, this is a three-story townhouse. The location is ideal, as it’s situated in a neighborhood that permits short-term rentals (STRs), making it a great investment opportunity. Additionally, it’s perfectly located with close proximity to both the ski slopes and downtown

I received an email directly from the seller saying: 'I have changed my mind about the sale of my home and would like to terminate the contract.'

What is the point of a contract if you can just change your mind and walk away?

 The issue is not the contract, the issue is going to be enforcing the contract, the individual who was selling this could hold this up for years and cost you tens of thousands in legal fees, and then they file bankruptcy and stall it another 5 years. They also could have a mortgage that could not be satisfied by the price and in that instance, again the bank would not release it - so again stuck. 

Again while they may legally be bound to an agreement, you are going to have to go through the court system to get them to abide by it, and that is not going to be easy or cheap.

I see your point. He’s making $925,000 on this sale after only owning it since 2021. I have no concerns about the owner filing for bankruptcy or any issues with a bank. I also don’t have a problem spending the money to fight for this. What grounds does he have to try and fight it? I don’t understand how this isn’t a clear-cut case. He signed a binding contract and then changed his mind. He is currently in breach of contract.

I’m speaking with an attorney this week to file suit against him. I don’t have to close until July, so I’m hoping to get in front of a judge who will enforce the contract.

Quote from @Steve K.:

What makes the property unique and why can't you find a different property that meets your needs? The reason I ask is that specific performance is rarely granted as a remedy in my experience (not a lawyer, just do some transactions) unless a monetary reward isn't enough to make the buyer whole because the buyer truly can't find a different property to meet their needs. From what I have seen, the typical remedy is termination of the contract, refund of the EM deposit and all expenses incurred by the buyer during the failed transaction. Could be an uphill battle but good luck. 

This property is unique due to its layout and prime location. Most of the surrounding properties are one-story condos in the area, this is a three-story townhouse. The location is ideal, as it’s situated in a neighborhood that permits short-term rentals (STRs), making it a great investment opportunity. Additionally, it’s perfectly located with close proximity to both the ski slopes and downtown

I received an email directly from the seller saying: 'I have changed my mind about the sale of my home and would like to terminate the contract.'

What is the point of a contract if you can just change your mind and walk away?

Quote from @JD Martin:

Quote from @Ryan S.:

In October 2024, I began searching for a property in Colorado but couldn't find anything suitable on the MLS. Exploring alternative options, I inquired about a property that was listed for rent. I reached out to the agent representing the property to see if the owner might consider selling. The owner was open to the idea and outlined their terms and conditions.

After several weeks of negotiations, we reached an agreement, and the seller signed a binding contract. However, about eight days later, the seller informed me that they had "changed their mind" and no longer wanted to sell.

In the weeks that followed, the seller failed to provide the required documents, including HOA disclosures, the seller's disclosure, and other essential paperwork, all of which were due within specific timelines per the contract. This failure constitutes a breach of the agreement.

This property is truly unique and perfectly suited to my needs. I’ve sent the seller a demand letter, but instead of honoring the contract, they offered me money to walk away. I don’t want compensation; I want the property. Has anyone pursued legal action for specific performance in a similar situation? Any advice or insights into the process would be greatly appreciated.

 Tom's link is excellent. Yes, you could do so, but it doesn't sound like you did anything on your end. Did you acquire the funds? Do you have proof of loan approval? Did you follow or attempt to follow everything on your end such as inspections, etc and were stymied? If not, you will have a steep burden to prove you were able to actually fulfill your end of the contract and have a court order the completion of a sale. 

I would take the money they offer and move on.

I have fulfilled all my contractual obligations, including making the escrow deposit. The seller, however, is in breach of the agreement, as they have failed to provide the HOA disclosures, seller's disclosure, and other required documentation, all of which were due within the specified timelines outlined in the contract. My purchase is not contingent on financing, and I genuinely want to move forward with buying this property.

Quote from @Tom Gimer:

@Ryan S. This is purely a state law issue. You're going to want to review the case below and any that have expanded upon the issues cited within it since.

https://law.justia.com/cases/colorado/court-of-appeals/2003/...

Good luck.

Very interesting and helpful. Thank you. 

In October 2024, I began searching for a property in Colorado but couldn't find anything suitable on the MLS. Exploring alternative options, I inquired about a property that was listed for rent. I reached out to the agent representing the property to see if the owner might consider selling. The owner was open to the idea and outlined their terms and conditions.

After several weeks of negotiations, we reached an agreement, and the seller signed a binding contract. However, about eight days later, the seller informed me that they had "changed their mind" and no longer wanted to sell.

In the weeks that followed, the seller failed to provide the required documents, including HOA disclosures, the seller's disclosure, and other essential paperwork, all of which were due within specific timelines per the contract. This failure constitutes a breach of the agreement.

This property is truly unique and perfectly suited to my needs. I’ve sent the seller a demand letter, but instead of honoring the contract, they offered me money to walk away. I don’t want compensation; I want the property. Has anyone pursued legal action for specific performance in a similar situation? Any advice or insights into the process would be greatly appreciated.

Quote from @Mitch Kraemer:

Just got off the phone with TLO and I was told that they do not open their services to real estate investors.  I was told if I could show a professional license such as a broker license I might get approved but the best option would be a Private Investigators license, otherwise, they didn't see any other path to approval for me or my company.

 I am a broker. I will try calling them tomorrow and see what they say. 

Thank you for your response. Considering Naples is a seasonal market, I've been contemplating the possibility of renting out my house during the high season for $25,000 per week. By splitting the cost among two or three families, it would be much less compared to booking multiple hotel rooms for 10 plus people in my location. I'll do more homework with some luxury sites around me. 

Greetings, everyone! I'm based in Naples, FL, and I'm considering converting my primary residence into a short-term rental. Allow me to share some details about my house: it spans 5,600 square feet with 5 bedrooms and 4.5 bathrooms. The property is situated on the water, offering a stunning view of the bay, and it's just a short 300 steps away from the beach. There's a hotel within walking distance from my home, providing guests with easy access to beachfront dining. Additionally, I also have a Ritz Carlton less than a mile away with room rates starting at $1,500 per night during season.

The current value of my house is estimated at around $8,000,000, and it costs me approximately $250,000 per year to maintain. I'm curious if it's feasible to generate positive cash flow by renting it out. Naples experiences distinct seasons, which can significantly impact the rental market. I've been considering setting a weekly rental rate of $25,000. Does this seem like a realistic figure? I'm particularly interested in hearing from those who have experience with luxury short-term rentals. I'm open to connecting and learning from your insights. Thanks in advance. 

Thanks again for everyones impute and advise. I have moved on from the above two previous mentioned properties. I just put this industrial property under contract. Here is the link: https://www.loopnet.com/Listin... 

Curious what everyones opinions is on this property. I like that is is selling at a 6.7 cap. What questions should I be asking? What are some concerns I should be aware of or asking about?