Legal Question in Real Estate Law in Minnesota

breaking purchase agreements

A purchase agreement was signed for the sale of our house ( a duplex ), they are now saying because they would like to zone this as a triplex and they are legally able to do so that they want out of the agreement.They had a 5 day window to make a reasonable attempt obtain a mortgage, the cancellation was sent through on the sixth day.What legal recourse do we have - we have their 4,000 deposit.


Asked on 8/07/00, 3:24 pm

1 Answer from Attorneys

David Kelly-952-544-6356 Kelly Law Office

Re: breaking purchase agreements

It depends on exactly what your purchase agreeement says, and I suggest you consult your own attorney.

In most such situations you have three choices:

1. Keep the earnest money and sign an agreement canceling the purchase agreement.

2. Sue for specific performance - an order saying the buyer must go through with the deal.

3. Sue for damages.

You may do any one of the three. For No. 2 you can't sell the place to someone else at the same time, and for No. 3 it may be difficult to do so because a potential buyer will worry about the rights of the original buyer.

In today's market where things are selling quickly, No. 1 may be the best choice.

Good luck.

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Answered on 9/15/00, 3:25 pm


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