Cancelling a signed contract

[branimal]

I signed a contract in Delaware in a sketchy part of town. It's a hot corner with a lot of drug dealing etc going on outside.

I hired an inspector to evaluate the property and his vehicle was surrounded by the local thugs. He cancelled the inspection out of fear for his personal safety and his equipment. So no inspection was done. I do have an inspection contingency clause in my contract. I could call another inspector, but at this point I am convinced me no one will rent the apartment from me.

The broker did not deposit the earnest money check, so I cancelled the check. Is it the wrong thing to do? OF course. But I'd rather they fight me for the money than vice versa.

At this point, what is the legal action, the seller can take against me? What are my defenses?
Thanks.


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[zddoodah]

I hired an inspector to evaluate the property

What property? Evaluate it for what?

I do have an inspection contingency clause in my contract.

Is this the same contract you signed with the inspector or a different contract?

I am convinced me no one will rent the apartment from me.

What apartment?

I'm gonna stop there. Your post is all over the map and lacks context. It's almost as though you dropped us down in the middle of a story. Please explain what's going on.

 

[branimal]

Im referring to a purchase contract for a single family home.

I hired an inspector to validate the home does not have any major defects.

My plan was to rent out the single family home.


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[zddoodah]

Ok...when the buyer breaches a contract for the sale of real property, the seller's basic remedy is to find another buyer. If the property eventually sells to Buyer #2 for a price that is less than the price that Buyer #1 agreed to pay, then the seller has a valid legal claim against Buyer #1 for the difference in sale price, plus all additional expenses incurred as a result of having to relist the property and find another buyer. Nothing you have written suggests you would have any viable defenses if you get sued.

 

[branimal]

What is the timeline and effort required to sue? I'm hoping they find another buyer and let me off the hook.


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[army judge]

What is the timeline and effort required to sue? I'm hoping they find another buyer and let me off the hook.


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You can simply say, "I hired an inspector to evaluate the property. He was attacked before he could do the work, and refused to return to do the job.

I was unable to find another inspector to go into that part of town.

I tried to contact you, but was unable to do so.

I canceled my check, because I was unable to have the property inspected."

The seller might still bring an action against you, but the above words form an affirmative defense.
I could say more, but why bore us both?
Hopefully, the seller moves on to find another mark.

 

[adjusterjack]

At this point, what is the legal action, the seller can take against me?

You can be sued for the amount of the check.

What are my defenses?

That depends on the exact terms and conditions of your contract. It's possible that the inspector chickening out does not give you the option of cancelling the contract. If not, then the seller is entitled to the money you put up.

 

[mightymoose]

If the inspection was not performed then I don't see that the inspector has much of a claim to the check. The inspector could potentially sue over the canceled check but will have to prove that the money is owed... and won't have anything to show.

 

[branimal]

How long & complicated is the lawsuit process? I'm trying to figure out if the seller will even pursue me for a couple thousand dollars.


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[mightymoose]

I wouldn't even worry about it unless they come after you.

 

[zddoodah]

What is the timeline and effort required to sue?

How long & complicated is the lawsuit process?

I don't know how to quantify effort or complication, but most lawsuits take somewhere from 6-24 months. Occasionally a lawsuit will take less than 6 months (this is particular true in small claims court), and many lawsuits take more than 24 months.

I'm trying to figure out if the seller will even pursue me for a couple thousand dollars.

I would say that the chances of you being sued are proportional to the difference, if any, between the price you agreed to pay and the eventual sale price.

 

[adjusterjack]

If the inspection was not performed then I don't see that the inspector has much of a claim to the check. The inspector could potentially sue over the canceled check but will have to prove that the money is owed... and won't have anything to show.

The cancelled check was the earnest money check for the purchase of the property. The seller could be entitled to that money if the buyer backed out without cause depending on the terms of the contract.

The standard DE real estate purchase contract presumes that the inspection has been completed and the buyer's right of cancellation of the purchase is based on the results of the inspection and the seller's refusal to make the requested repairs.

See Section 21:

http://wardtaylor.com/documents/AGREEMENT_OF_SALE_for_DELAWARE_RESIDENTIAL_PROPERTY.pdf

If that's what the OP signed then nothing in the inspection contingency gives him the right to cancel the purchase because the inspector failed to inspect.

Under that contract, the seller has a cause of action for the earnest money.

 

[mightymoose]

The cancelled check was the earnest money check for the purchase of the property.

Ah... I read it as payment to the inspector for the inspection.