What will happen if both the seller and agent are threatening to sue me because of breach of contract?

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What will happen if both the seller and agent are threatening to sue me because of breach of contract?

I am getting threats of being sued because of breach of contract. On 03/11, I placed an offer on a house. On 03/13 they sent me a counter-offer. On 3/14 I accepted the counter-offer. On 03/16 I withdrew the contract because I didn’t get approved for USDA loan but I did get a approved for a FHA loan, however I don’t have the 3.5 to put down.

Asked on March 28, 2017 under Real Estate Law, Alabama

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Unless the contract of sale specifically said you could terminate or withdraw from the sale without penalty if you could did not have the down payment required by a loan (since you write that you did in fact qualify for the FHA loan), your economic situation or inability to come up with the down payment is irrelevant. Contracts are still binding on parties even if the become financially detrimental, or even impossible, for them. Based on what you write, it appears they can sue you for breach of contract with a high probabilty of winning.


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