Original sale contract stated we are selling house "as is". Regardless the buyers requested we do some repairs. They seemed minor so wee agreed in a signed addendum. But one of the minor repairs ended up getting quoted at $1200 so we did not want to. We instead offered furniture we had previously quoted them at $400 but that was rejected. This is not a structural our out of code repair. Inspection describes it as a "desirable" safety option. At this point I want to back out of the whole contract because I felt we have done so much more than we originally agreed we would not. What would be the ramifications of backing out? The other agent has threatened to sue, is that realistic, would they have a case? What would we be liable for? Thanks
Your problem started with the addendum to the contract, which should have been reviewed by your attorney before you signed it. Typically, in order to protect a seller, I include a monetary cap or limit on repairs so that if they cost more than anyone anticipated, the seller can either elect to pay for them or back out of the deal. In this case, if you had put a monetary cap of say $500.00 on the repairs you'd be willing to do, you could have easily gotten out of the contract or the buyer could have agreed to pay the remaining $700.00. Depending on the wording of the contract and the addendum, you may well be stuck with performing this contract, which the buyers could force you to do if they elect to seek "specific performance" of the contract through a court proceeding. In the alternative, they could sue you for damages (if they didn't want the house), the basic measure of which is the difference between the value of the house and the contract price. As noted, the buyers could have other additional damages, and the realtors may have damages too if you back out. I think you should try to sweeten your offer to the buyers by offering the furniture plus some cash to apply toward the repair. Finally, you cannot do much litigating for $1,200.00 so a settlement would be the best route for you. If you get the case settled, make sure you get a signed release of all claims from the buyer. Consult with you attorney about any settlement and release.
First, your realtor should be helping with this. Backing out of any contract has its consequences, and in the case of real estate, those are typically financial. The buyer's earnest money, for example, is usually returned, but the buyer may also have legal grounds to sue for damages, such as temporary living expenses, home inspection fees, surveys and other expenses. In addition, the broker or the listing agent may also sue in order to recover lost commissions and time invested in the transaction.
I need to review all documents before giving any firm advice, however, from a "high level" you risk being sued for financial damages and specific performance, that is a Court requiring you to honor your contractual obligation sell the property as agreed. You should contact a local attorney in your area to get advice ASAP.
You may consider this backing out" of the contract, but unless you have language in the sales contract giving an express right to option out of the contract what you are doing is considered breech of contract and you would be liable for whatever damages a Court deemed reasonable considering the circumstances of this sale.
Anytime there is a breech of contract by a party, there are consequences.
