Breach of specific performance contract for property and a signed personal guarantee with personal property
2 replies to this topic
Posted 14 February 2013 - 03:04 AM
My husband and I had an option with the representing estate attorney ( multiple owners for a large piece of riverside property). We found an interested developer who over the course of about 6-8 months signed approx. 8 sales contracts and extensions. He signed with his company ( real estate development) name and his personal trust as well. The contracts were signed by all parties, included the property address, legal description, acreage, purchase price and also price per acre and a closing date...extended several times due to having issues getting off shore funds and his family Trusts board approval, which he did get and provided us a copy as well as proof of funds.. Etc. We felt so secure that we personally put up his earnest money for him in the amount of approx. 500,000.00 ( non refundable) which went to be divided among the several owners of the property each ti,e we went past closing and asked for additional extensions. The final extension, we asked that he also sign a contract personally, securing the agreement with his own personal property and assets, which he did. All contracts were specific performance with no way out other than not to be able to get the funds, which we had been given tons of documents and bank statements etc.. Well, needless to say, the final closing date was Thanksgiving week 3 years ago and the guy literally disappeared off the planet. No return calls, no contact, nothing.. We couldn't find him for months. Ultimately we lost our investment of Earnest money, lost out profit from the sale ( which was around 2 million dollars and eventually ended up losing our home to foreclosure and filing bankruptcy due to the fallout. He lives out of state but we have now found him and I suppose he doesn't think we care anymore so he is very open online with his huge development he has built and also his real estate agency he owns as well as his multi million dollar house in a very nice gated community where he lives. My question is: what are the odds of perusing the original agreement or contract to perform or at least collect what we lost and also how difficult is it to go after his personal property out of state etc? Do I have a case? And where do I start? Thanks in advance for any help I can get!
Posted 14 February 2013 - 10:53 PM
It has been more than 3 years since the guy allegedly breached the contract. So the first issue to address is whether the statute of limitations (SOL) to sue for this is gone, and that depends on the applicable state law. Since you didn't indicate the state, no one here can point to the specific statute on that. If the SOL is expired, then it's too late now to do anything about this even if you have a great claim to pursue.
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