Legal Question in Real Estate Law in Illinois
I am being sued for 10,000 in small claims court for breach of contract. My husband and I were going to buy a house last year. However, the day before the closing, we did a final walk through, and the house was not in the same condition as the date we signed the contract. Also, we found two water leaks. One was hidden behind a dresser. We did not have a inspection done since my husband is in the trades. Also, the seller did not disclose any leaks in the disclosing statement. The house went into foreclosure a few months later and was sold this past summer for the same amount I offered. Therefore, the plantiff did not lose any money. Can she still sue us?
2 Answers from Attorneys
From the description on your end, it sounds like a case you should win on substance, but that still means defending it. An attorney would first look at the contract to see if there was a clause about damages should the seller win as that may provide an out. Next, if the contract does not govern on damages, you are correct in theory that the seller may not be able to show actual damages unless the seller can show that they would have fared better if the sale had gone through. Regardless those aspects, if the house was not in the condition it was in when you made the offer and if there were disclosure issues, assuming all was handled right, you should be able to defend on the substance of the case as well. Start by speaking with your real estate closing attorney to confirm how things were handled when you backed out, get his or her opinion on the case and find out if he or she can represent you.
What he said. She can sue, but I doubt that she would win if things are as you say. Remember, the final walk-through is to catch items like those you mentioned. A final walk-through has no purpose if there is no right to cancel. I hope you have pictures. Abusing a few electrons is cheap and excellent insurance.
Most people do not have counsel for small claims court, but I think it would be a good idea for your real estate closing attorney to be there as a witness if nothing else. Of course, the fuss might be caused by the way your attorney canceled the deal. In which case ...
I think you can tell why "short answers" and attorneys do not mix well.
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