Seller lacks option to terminate contract
Q: Why does the seller not have an option to terminate the contract?
A: Read Paragraph 23, of the contract, titled “Termination Option.” The answer is that there is no option for the seller to terminate the contract. The buyer can purchase an option from the seller (called “option fee”) whereby the seller grants the buyer the “unrestricted right to terminate the contract,” but the seller cannot also terminate the contract because the seller has already agreed to sell the item (real estate). The only thing the seller can do is to not agree to requests by the buyer to makes changes, improvements, etc. But if the buyer then agrees to purchase the property without the changes the buyer has requested, then the seller must convey the property to the buyer. Therefore, the seller cannot purchase or acquire an option to terminate the contract.
Q: I just bought a townhouse, down- sizing a bit. After moving in, I discovered my car wouldn’t fit in the garage. My broker says the seller should have disclosed this to me. Can I sue the seller?
A: There is a case discussed in the continuing education materials almost exactly like this. The problem in proving anything is who lied to you? Did the seller tell you the garage was big enough for any car? Did the listing broker? Did you see the garage when you were looking at the house? Do any other garages in your townhouse complex have this problem? How big is your car? In short, if nobody lied to you or deceived you, you don’t have a cause of action for your own negligent inspection of the premises, in our opinion.
Q:
I just bought a home in Houston. Every time it rains, the water is ankle deep in the garage. My new neighbor said the prior owner had this problem for years, but this was never disclosed to me. It was not on the seller’s disclosure form. I’m stretched thin now, and can’t afford a lot of home repairs. Can I sue the seller?
A: The cases have been very hard on seller’s who lie on their seller disclosure forms. These are required by state law, and if they are deceptive, the proof is in the form. See if you can find an attorney who will take the case on a contingency and hope for the best. Lawsuits tend to be expensive, and you may win and the seller has no money to pay you. Frequently, it is cheaper to fix the problem than bring a lawsuit. Discuss this candidly with your lawyer.
Q:
I recently bought a condominium in a large complex. There are certain areas I cannot get into for some reason, and the management company is not cooperating with me. How can they keep me out of these areas?
A:
It depends entirely on the Condominium Declaration. There may be limited common elements that only adjacent owners can use, or are unique to one building. You should have read the declaration prior to closing, because you purchased your unit subject to the terms of that agreement. Sit down and read it carefully, you may be surprised at what is in it.
To send a question visit www.AskGeorge.net and select the “Ask A Question” button. Answers to questions do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney. George Stephens is the broker of Stephens Properties. Charles J. Jacobus, J.D. is board certified by the Texas Board of Legal Specialization in residential and commercial real estate law.