Real estate closing threatened by contract dispute
There are various reasons that the sale of a building can be stalled. Even when a buyer has been obtained and a contract has been signed, various issues can arise that stop or slow a sale. In these cases, people may have to turn to the courts in order to reach closing or receive appropriate damages for breach of contract.
In one recent case, the sale of a building has been stalled over a potential commission. According to reports, the building held a retail store and restaurant before being shut down. The owner of the nearly 12,500 square-foot building was trying to sell the building to another party.
In order to find a buyer, another man claims that he was offered a two percent commission from the sale of the building if he referred someone to the property. This man — a property broker — claims that he found the party that eventually entered into a contract to purchase the building for $27.5 million.
However, the property broker claims that after this deal was made, he contacted the building’s owner who denied that the man was owed any commission on the sale. The property broker sued and is asking for between $550,000 and $1.375 million in damages. The property owner says that the future of the sale has been jeopardized by the suit. The parties will now argue about the existence of an oral real estate contract between the parties.
Contract disputes are one of the many things that can delay a Minnesota real estate closing. The damages can easily be in the millions of dollars depending on the situation. And, as in this case, real estate litigation can threaten the entire sale. Therefore, it is important that any contract is clearly negotiated and drafted before the parties agree to the deal. By taking steps to avoid contract disputes, the parties can hopefully avoid future issues.
The Aspen Times, “Litigation stalls sale of Boogie’s building,” Rick Carroll, May 1, 2015
Image Source: Aspen Times