| Breach of Contract
Hello everyone,
This is the first time I am posting so please be easy on me. This might be a bit long but I want to paint the full pictures hoping I can get some good advice.
I am in a real predicament here as I backed out of a home purchase after I waived all contengencies.
Long story short, we are looking to buy a home in Virginia for $450k. Our agent suggested us to put down $10K and waive all contengencies except for Home Inspection to motiavate the seller to sell. I knew something was not right as the earnest money was larger than norm in our current market condition which I think the seller is more desperate than us. I didn't think much about it since we were determined to purchase and half of the time it was my wife doing the dealing and signing the papers. Turned out we had some real financial and legal problems which prevented us from going through with the purchase. The deadline to legally cancel has past which we default by breach of contract. Please note that our agent also suggested a quick settlement which the total time from the ratification of the contract to settlement was less than 20 days. We were really in a spin and we trusted her.....I so regret.
I have already stopped the loan and meanwhile our agent was trying very hard to convince us that we need to buy it or we are in big trouble. I figured I would lose the $10k but our agent was telling me that they might sue for more. She finally gave up and we signed a withdraw stating we will be released of all obligations if they take our earnest money; the seller has not yet responded. Please note the seller is actually an investor/broker who never lived in that house and the house is currently vacant.
Here is the twist, two days after we signed the withdraw, our agent said her broker wanted her to persue for the commission. Call us stupid but we did not read the contract between our agent and us which a section on the contract stated if we default, we have to pay her the commission. Here is another twist, our agent wrote the wrong year on the date where it said contract termination. It basically read as the contract will be void if after March, XX 2007.
Here are some questions I have:
- I really dont' think the seller incurred much damage since only 20 days has past, at least not $10k worth. I know I'm not the one determining that but are they entitled to the whole $10k without proving damge? (The contract did say the seller are entitled to the entire amount of earnest money if they so choose not to persue for more damages.) I guess what I am really trying to understand is, if we do go to the court, will I have a chance to pay less than 10k worth of damage? (Another note, that house has been on the market for 4 month with no offer except for ours.) I guess it doesn't matter because I would be paying alot more on legal fees, but I asked, just in case they decline on the earnest money and decided to sue.
- What can they really sue for? Emotional damage? Loss of time?
- Since the seller is an investor and he is actually THE broker of the seller side, can they sue for the commission they lost? I don't know if there was even a commission involved on the seller's side but the contract stated if the seller accept the earnest money, their broker will be entitled to half of it. The contract did not say who pay for the rest.
- Can my agent sue me? Knowing that she wrote the wrong date on the the contract termination, which to me, it sounded like the contract was void at the time of signing.
I started to have some conspiracy theory about our agent been unethical which her suggestions were designed to prevent us to have very little outs if we changed our mind. She wanted to make sure we will not default no matter what was the circumstances or financial difficulties. She was fully aware that we have "money and leagal problems" but she still took the job.
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