Location: California
I apologize if this is a little drawn out.
In March I put my home up for sale and relocated my family. I moved into a home with the intent to rent the home until my previous home sold, then purchase the home I am renting. In March I made a verbal agreement with the home owner to buy his house for $275000. I signed a written contract to rent the home(this contract expires Sept 30th). He did not want to sign a contract for the sale of the home. I later learned that this was because he had a contract with a realtor and wanted to wait until this contract was up so that he wouldn't have to pay a commission. I notified the homeowner that I was ready to start the purchase process. I then learned that the value of the house was much lower than the agreed purchase price. I notified the homeowner that I was going to check prices of comparable homes. I never signed any paperwork regarding the purchase of the home, and the rental contract does not mention the sale of the home.
While looking at comparable homes I found a much nicer home for a much better price. This house was a foreclosure being sold much lower than market value. I made an offer on the home and it was accepted.
When I told the owner of the home that I am renting that I would not be purchasing his home or extending my contract past its expiration date, he got angry and claimed that he is going to sue me. He is claiming that since I agreed to buy the home for $275000 and it is now only worth $199000, that I owe him $76000.
Does he have a leg to stand on? I don't think that he does, all of the home purchase contracts that I have dealt with have had conditions(and penalties) for the buyer or the seller backing out of the deal, but they could still back out.
I apologize if this is a little drawn out.
In March I put my home up for sale and relocated my family. I moved into a home with the intent to rent the home until my previous home sold, then purchase the home I am renting. In March I made a verbal agreement with the home owner to buy his house for $275000. I signed a written contract to rent the home(this contract expires Sept 30th). He did not want to sign a contract for the sale of the home. I later learned that this was because he had a contract with a realtor and wanted to wait until this contract was up so that he wouldn't have to pay a commission. I notified the homeowner that I was ready to start the purchase process. I then learned that the value of the house was much lower than the agreed purchase price. I notified the homeowner that I was going to check prices of comparable homes. I never signed any paperwork regarding the purchase of the home, and the rental contract does not mention the sale of the home.
While looking at comparable homes I found a much nicer home for a much better price. This house was a foreclosure being sold much lower than market value. I made an offer on the home and it was accepted.
When I told the owner of the home that I am renting that I would not be purchasing his home or extending my contract past its expiration date, he got angry and claimed that he is going to sue me. He is claiming that since I agreed to buy the home for $275000 and it is now only worth $199000, that I owe him $76000.
Does he have a leg to stand on? I don't think that he does, all of the home purchase contracts that I have dealt with have had conditions(and penalties) for the buyer or the seller backing out of the deal, but they could still back out.
