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Seller Violated Purchase Agreement, How do we get down payment back?
Anonymous7 views3 answers
My husband and I purchased (or agreed to purchase) a property in February. Possession was April 1st, with the purchase agreement including the requirement that the seller install a full bathroom, as the building did not have one. April1st came and went, and now May 1st is here. We have made 2 mortgage payments, in addition to the down payment, but the bathroom isn't even close to done, I would barely call the project started.
We have decided to cancel the land contract and want to receive the down payment back, since this breach of contract was not on our end, and we displayed good faith at every turn, even giving them extra time. What are our legal options to resolve this quickly? The seller does not want to return the payment, they claim it all went to the realtors.
What the seller is telling you may very well be correct. They may have had to pay the realtors some or most of your downpayment to cover the real estate commissions.
I feel your pain. I have had construction projects extend far past promised dates. It is very frustrating.
It is unclear from your summary where the tie-up is. Maybe there is something the seller can do to speed things along. Having been involved in numerous such projects, I know that a great deal can be accomplished in a very short period of time. There should be a non-legal way to resolve these issues. Perhaps they can agree to your stopping payments until the construction is complete. You *may* have this right under your contract.
If there is no cooperation from the seller, your rights and obligations are based on your contract. You need to have it reviewed by an attorney to determine your options.
James Frederick
I agree with Atty. Frederick. When an agreement fails there are only two options to resolve the breach, the first is work it out with the other party and rely on further negotiation to resolve the issue; the second is to have others resolve it for you (attorneys, the court system, mediators, etc.). It is much cheaper and less time consuming to work it out and rely on your relationship with the other party to get the deal done. If all else fails, however, call an attorney!
Please let me know if I can help further.
