My question involves real estate located in the State of: TX
I am a week away from closing on a foreclosure. I have done everything I need to close and everything is ready on my end. However, during the inspection process, we had a structural enginer come out and told us about the foundation problems. The seller agreed to have that fixed before closing and we have an amendment to the contract stating such. In fact the amendment states specifically which contractor (one of the two we used for estimates). It is a week away from closing and no work has been done, or lined up and my agent is telling me that he thinks higher ups in the seller's organization do not want to spend the money to get it fixed. ($5,500). None of the banks we have talked with will approve a loan without the foundation being fixed first, which to me is understandable. At one point in time the specified contrator was scheduled to do repairs, but that was cancelled a day or two before they were to start work.
There are two clauses in the contract that are bothering me now.
Sellers Unilateral Right To Extend. If, in the Seller's sole disrection, Seller is unable to close the transaction contemplated by this Agreement on or before the original Closing date, then such Closing Date shall be automatically extended for thirty days; provided, however, that Seller, Seller's representatives, Selelr's agent or the Closing Agent may give the Buyer written notice during such thirty day period that Seller is ready to close and the Closing shall occur within fine days following such written notice.
Then under remedies there is
Seller's Default, Seller's Cancellation. If Seller is unable to perform as required by this Agreement for any reason, or if the Property is no longer available for sale for any reason, or if the Buyer elets to terminate pursuant to Section 15.1 (damage to Property Prior to Closing clause), then this Agreement may be cancelled upon Seller's written notice to Buyer. In such an event, Buyer shall be entitled to the return of the Deposit, pursuant to Section 5.4, as Buyer's sole and exclusive remedy at law and/or equity. In no even shall Buyer have the right to seek or obtain specific performance or enforcement of this Agreement.
I'm not experienced in home buying, so I should have read up more on these clauses and contracts. I was planning on taking this to small claims court and sue for the inspection fees, my costs incurred while living in a hotel after the closing date (I moved to another city), and the revenue that I am not getting by renting out my house since my stuff is still in it.
So my questions are, with these two clauses in the contract, can I do anything? Can they move the closing date to January of next year without anything from me? If this changes my interest rate with the loan, do I have any remedy for that?
And if they back out of the contract all together, will I have any remedy aside from my deposit? My arguement would be that language is 'If the Seller is unable to perform..', which they were able to perform, but chose not to by cancelling the work order with the construction company.
In the end, I want them to pay for that foundation repair whether they fix it I move in (preferred) or they pay in a judgement.
Thanks for any advice,
Adam