Damages for failure to close contract sale
a person owns a house takes out a mortgage, refinances mortgage with her son. Both are now on deed. Eventually the mother releases her interest in the house to two daughters. Mother dies. Contract to sell house signed by all three children. One daughter breaches sales contract by refusing to close because she does not want any of the mortgage liability taken from her 1/3 interest in the house, her claim she did not sign mortgage. Her interest was acquired via quit claim deed at no cost to her after the mortgages were in place. Do the other siblings have a case against her for breach of contract ? The son has bee left paying mortgage payments and expenses on the house since the breach. Sale should have ended his liability to do so. Can he claim damages against the sister who breached the contract?
Re: Damages for failure to close contract sale
The daughter who did not sign on the mortgage, still should have the balance of the mortgage charged against her interest. When mom quit claimed the property, she gave up whatever interest mom had, and mom’s interest was subject to the mortgage, so the interest of that daughter who benefitted from the quit claim daee was also subject to the mortgage.
Since the daughter was a signer on the contract, she likely has a liability for failing to complete the contract.
David Shestokas
Shestokas, & Associates
1342 Colonial Blvd., Suite H-60
Fort Myers, FL 33907
Re: Damages for failure to close contract sale
Clearly, the daughter who signed the contract but refused to close has breached the contract. However, I don’t know if the son has a claim for breach or just the prospective purchaser. There are probably what are called “equitable” claims against the daughter by the son though.
For example, the son “detrimentally relied” on his sister’s promise that she would sell the house. There are probably other equitable claims that she can be sued for. The son may be able to bring a suit to “quiet title”, or have the title rights clarified by a judge.
Talk to a litigation attorney who knows something about real estate.
Nicholas Chrisos
Nicholas G. Chrisos Attorney at Law
5 E. College Dr. Suite 112
Arlington Heights, IL 60004
Re: Damages for failure to close contract sale
The son and one sister should file a partition suit separating the 3rd sister’s interest. While doing that, the son can sue to regain his advancing the mortgage, and other expenses. Sister will find out that she took over 1/3 the mortgage as well as any money she will gain from the equity. Please call for a free consultation.
George Zuganelis
George M. Zuganelis, Attorney at Law, P.C.
3048 N. Milwaukee Ave
Chicago, 60618