Contract termination terms - Earnest money release

U

unreal23

New Member
Jurisdiction
Texas
My question involves real estate located in the State of: Texas

Hi all,

I backed out from a closing prior to closing based upon the contract violation below. The seller now has an attorney and apparently intends to fight release of earnest money ($3500). Before I hire an attorney, I wanted to get some input for you all.

The verbiage below is in the contract addendum - The seller did NOT provide subdivision information until 20+days after effective date of contract. Am I in a good place to win this battle if I hire an attorney?


1. Within days after the effective date of the contract, Seller shall obtain, pay for, and deliver
the Subdivision Information to the Buyer. If Seller delivers the Subdivision Information, Buyer may terminate the contract within 3 days after Buyer receives the Subdivision Information or prior to closing, whichever occurs first, and the earnest money will be refunded to Buyer. If Buyer does not receive the Subdivision Information, Buyer, as Buyer's sole remedy, may terminate the contract at any time prior to closing and the earnest money will be refunded to Buyer.

Thanks!

-Amith
 
Slight correction on verbiage, since the text did not copy fully from pdf

1. Within 14 days after the effective date of the contract, Seller shall obtain, pay for, and deliver
the Subdivision Information to the Buyer. If Seller delivers the Subdivision Information, Buyer may terminate the contract within 3 days after Buyer receives the Subdivision Information or prior to closing, whichever occurs first, and the earnest money will be refunded to Buyer. If Buyer does not receive the Subdivision Information, Buyer, as Buyer's sole remedy, may terminate the contract at any time prior to closing and the earnest money will be refunded to Buyer.
 
mightymoose said:
Looks to me like a reasonable argument. Are they claiming you were provided the documents?
Click to expand...

I am waiting to hear back from the seller's attorney. I guess I was pondering the worst case scenario of losing my $3500 on top of legal fees vs. just taking the loss. If it seems like I have a good case, I would be willing to risk attorney fees to get my money back.
 
You never know. It could just be a tactic to scare you away. If you are on solid ground then stick to your guns.
You needed the advice of someone who can review your contact in full and knows all the particulars about the allegations being made.
 
unreal23 said:
Slight correction on verbiage, since the text did not copy fully from pdf

1. Within 14 days after the effective date of the contract, Seller shall obtain, pay for, and deliver
the Subdivision Information to the Buyer. If Seller delivers the Subdivision Information, Buyer may terminate the contract within 3 days after Buyer receives the Subdivision Information or prior to closing, whichever occurs first, and the earnest money will be refunded to Buyer. If Buyer does not receive the Subdivision Information, Buyer, as Buyer's sole remedy, may terminate the contract at any time prior to closing and the earnest money will be refunded to Buyer.
Click to expand...


I suggest you take the entire contract and all other supporting documentation to a local attorney and ask for an evaluation, before you proceed with any alleged remedies.

Otherwise, you don't need an attorney to take your cause of action to small claims court.


Be advised, obtaining a judgment is far easier than ever getting paid.

You have many things to learn, much to ponder, before you do anything.

You don't need an attorney to defend, you could simply counterclaim in your answer.
 

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