When a Buyer or a Seller wants the other party to follow through on a signed contract but they don't want to, they take it to the courts and they sue for Specific Performance. Trouble is, it often takes years to resolve and there are many "contractual" loopholes as well as he said - she said things that get in the way. Obvioulsy it is best if all parties agree. If a buyer forces a Seller to close, oftentimes it is because the buyer has another buyer. And the Seller can play this game to, they can refuse to close on their real estate transaction with the first buyer because they have another buyer that will pay more waiting in the wings.
I have seen Mortgage Brokers facilitate real estate transactions, yes illegal - yes unlicensed - and no - no one cares, anyway I have seen these closings go to the Title Company, no problem, without a signature from the buyer, whereby the mortgage broker changed the document and all kinds of fraud was taking place. All the while the title company, First American Title, saw no red flags or problems with any of it. The Seller sought out my help as a real estate consultant, I charged nothing, and through examing this shady deal, the Seller walked out of the deal pending a new "legal" contract.
The big bad mortgage broker got mad and told, yes told - and yes they listened, told her buyer to get an attorney and to sue the seller for specific performance. The buyer did, and the real estate attorney took the case. This attorney bullied the seller into thinking they had to sell their home under these conditions. I advised the Seller to step back and take a look at all this a bit harder. I told them that if they still wanted to sell and had no money then they should have the Buyers Attorney wirte up a new deal that was legal and that they were happy with. I also told them they had NO binding contract.
I do not need to be a real estate attorney to know that with no legal description and no buyers signature the Seller could NOT be sued for Specific Performance and the Real Estate Attorney was Flat Out Lying to them, and trying to bluff them into doing what the buyer wanted. You see the Real Estate Attorney believed the Mortgage Broker without even talking with the Seller.
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I have also seen Seller just change their mind, after a signed contract and the Realtor says ok, but my client will be forced to sue you for specific performance, after this the Seller usually give in at the thought of a lawsuit. The Truth is if you dig your heals in there is not a whole lot a buyer can do to make you sell, yes a court can take years to make you sell at that price, but is really worth it. Meanwhile the digruntled Seller is living in the home, knowing that at some point if the buyer wins they will get their price, but meanwhile they live there for free. Oftentimes in this situation of harassment and diress they may damage the property, they may stop paying taxes and bring further adverse situations onto the property that the future buyer will have to deal with. If the Seller does not want to sell and is willing to go past that first "bluff" of suing for specific performance, then I say seriously think about walking away. The years, the money, the stress and time ahead of you may not be worth it.
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I have called the "Bluff" before when a Realtor tried to tell me that their buyer would sue me for specific performance, I said, come on you know how long that would take, the Realtor said yes my last one was six years. So I said my Seller does want to sell but you know that you cannot sue us for Specific Performance. In this instance the contract had many issues where the Seller could have easily chose not to sell.
I have called the "Bluff" before when a Realtor tried to tell me that their buyer would sue me for specific performance, I said, come on you know how long that would take, the Realtor said yes my last one was six years. So I said my Seller does want to sell but you know that you cannot sue us for Specific Performance. In this instance the contract had many issues where the Seller could have easily chose not to sell.
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So though you should follow through on a contract you signed, still there are many loopholes to get out of it and NEVER - Ever take the Realtors would for it. Dig you heals in, if you don't want to sell or feel something is wrong with the deal, Do Not Sign until your comfortable and if your never comfortable then don't sign. When and if you have your day in court, simply tell your reasons why, back it up with as much information as you can and don't let The Realtor Bully You.
