Another real estate question

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Another real estate question

Can the sellers of a home sue the buyers if they back out of deal with proper financing? According to the contract, the buyers were pre-approved by a bank to purchase my home but did not qualify for a FHA loan unless they had a co-signer. This contingency was never stated in the pre-approval letter and I found out about this through my realtor once they buyers walked away. As a seller, can I go after the buyers & the third party for breach of contract? And is the third party liable to the purchase of the house even if they didn’t sign the purchase agreement but did sign the FHA loan applicat?

Asked on June 21, 2009 under Real Estate Law, Ohio

Answers:

J. Norman Stark / J. Norman Stark

Answered 11 years ago | Contributor

Dear Frustrated Seller, My 2 cents' worth (opinion): is that you have no recourse against the purchasers for their inability to qualify for the FHA loan.  This was not, evidently, a condition of the Offer or Acceptance and you cannot hold people to conditions unspoken, unwritten, and not agreed upon, in writing in real estate transactions in Ohio.

Look for another buyer.  Good luck.

Sincerely, J. Norman Stark.


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