Tag Archives: BREACH

What happens if a closing is delayed by the seller in a cash deal?

Q: My closing has been delayed, due to the seller delayed in providing documentation to the title company. (Swissvale, PA)

A: The issue would be whether the seller breached the sales agreement. Your sales agreement should specifically define the terms of what constitutes breach. In your case it may be a failure to close within X amount of days. The sales agreement will also spell out consequential damages that apply for such a breach. These damages may be limited to the return of the hand money or could possibly provide consequential damages. Have an attorney review the document immediately, especially if you want out of the contract. You may have so many days to react to the breach.

Can I get out of a Standard Agreement for the Sale of Real Estate that I signed?

Q: I signed a Standard Agreement for the Sale of Real Estate and closing is scheduled for 7/26. I suffer from major depression and I was also withdrawing from a prescription from my doctor. I do not believe I was of sound mind and capable of making the decision at the time. Can I void the sale and cancel the closing? What are the potential consequences if I do this? (Pittsburgh, PA)

A: Your stated reason for rescinding the sales agreement will likely not be valid and I therefore would not disclose this to anyone. The answer lies within the language of the sales agreement. The damages against you may be limited to the security deposit. If so, the seller therefore cannot seek consequential damages. Read the paragraph which addresses damages. I am not sure which version of the sales agreement you have but it may be paragraph 22. If your damages are not limited by the wording of the agreement, I would pay an attorney to examine language of the agreement pertaining to inspections and other conditions precedent to acceptance of the property. If you have not already had an inspection performed, a building inspector may be very helpful to you. Follow the advice of your attorney.

How do we break my brother’s lease?

Q: Our brother will be hospitalized for over a year due to total blindness. How can we get him out of his lease with 7 months remaining on the lease. He has to be hospitalized in another city for total rehabilitation. He is totally blind with frontal lobe tram.

A: Of course I would need to check your lease to give you more certain advice. However, I can advise generally. You would need to immediately notify the landlord in writing. Tell him that your brother has vacated the apartment on a certain date, and that you want the security deposit back. I would send this certified mail, with your brother’s new address on it. Even though you are breaching the lease the landlord has a duty to find a new tenant ASAP to limit his damages. If the landlord sues your brother at the District Justice level, he will need to show his efforts to mitigate his damages by advertising for a new tenant. In addition, vacate and clean the apartment as soon as possible and photograph everything. Unless he can show difficulty in finding a replacement tenant, your damages will be mitigated.