Hi, my wife and I made an agreement (home purchase agreement) to buy her sister's house once we could obtain a loan in our name as we did not have any credit built up. We went to our credit union and they ordered an appraisal on the home and it came back $5,000 less than what she is asking for the home so the credit union will not give us a loan unless we pay the difference. The house appraisal also stated that the home is only considered a 1 bedroom and we were told that it was a 2 bedroom. These major issues have caused my wife and i to decide not to buy the home. Her sister is now threatening to take us to court if we don't buy it. We have already given her 10% down and told her just to keep that money. Can she actually take us to court? We are located in North Carolina. Thanks
2 Answers from Attorneys
I would recommend consulting with a real estate attorney in your area. In order to begin to answer the question, an attorney would need to review the contract signed between you. Also it may be that you are entitled to your earnest money back.
Mr. Rosner is 100% correct, it depends completely on the purchase contract. Hopefully, the comtract was made contingent on you getting a loan. If this is the case, then not only can you get out of it, you should get the 10% back. Have a real estate attorney review the agreement.