Can I sue a buyer who backed out 2 days before closing?

My house was on the market for sale and a buyer made an offer. The buyer requested repairs be made which were done at a cost of 4k. The contract was signed and closing was to take place on 03/03. My wife and I packed up the house and moved out on 03/02. The

buyer didn’t disclose an IRS debt and her lender discovered it 2 days before closing. The buyer is delaying satisfying her debt. I spent money on moving and storage, repairs and I have to make another mortgage payment. Do I have a legal recourse?

Asked on March 13, 2017 under Real Estate Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Yes, you can sue the buyer for "breach of contract" to recover any costs or losses you have incurred due to their breach, including carrying costs (e.g. mortgage payments, insurance, taxes) for still having the house, your moving and storage costs, etc. (Probably not for the repairs: you'd have had to likely make them for any buyer, and are getting value of them yourself in the interim, so they are not really a "loss" to you, even  though you spent money on them.) You could also keep her earnest money/deposit for her breach.

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Yes, you can sue the buyer for "breach of contract" to recover any costs or losses you have incurred due to their breach, including carrying costs (e.g. mortgage payments, insurance, taxes) for still having the house, your moving and storage costs, etc. (Probably not for the repairs: you'd have had to likely make them for any buyer, and are getting value of them yourself in the interim, so they are not really a "loss" to you, even  though you spent money on them.) You could also keep her earnest money/deposit for her breach.


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