PURCHASE AND SALE CONTRACT, CAN THE BUYER BACK OUT…IF?
Question by frtwome: PURCHASE AND SALE CONTRACT, CAN THE BUYER BACK OUT…IF?
I have a home owners title insurance policy, We just did a contract to sell our home, the title companies attorney, refused to clear our title. see below the statement made by the attorney doing the title research.
(It is this deed of trust that is not properly released. The releases that are in error reference the divorce decree and MDA, not the deed of trust.)
The Title Insurance company that cleared my title search (less than one year ago, and issued me title insurance, will issue my buyer a new policy, covering the full amount of the selling price. But my buyer wants to back out of the contract. Can he do this, if I can guarantee him issuance of title insurance? Or can I file a civil law suit for Specific Performance of contract?
The title company attorney say the only way that I can get the improper release taken care of, is by finding this lady on the release, and have her to sign off on it. I do not know this person, The release was improperly done in 2005. I have no idea how to find her to get her to sign off. Isn’t there another way?
Best answer:
Answer by linkus86
Likely your purchase contract clearly states that a contingency of the sale is that title shall pass clear of all liens and encumbrances. And less than clear title is a valid reason to back out of a sale despite the fact that a title insurance company will insure the title. The fact that the issue is in error is irrelevant to the buyer as it would become his problem to resolve if the sale went through and he doesn’t know the lady either.
If you are feeling litigious, I suggest you sue the title company that improperly cleared the title to you when you purchased the property. You also need to beware that the buyer has grounds to sue you for any expenses he/she incurred in the purchase process as a result of your inability to clear the title. Good Luck!
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