Buyers of real property are often overwhelmed by the numerous, extensive provisions in purchase agreements. Unfortunately, because of this, many buyers enter into purchase agreements without fully understanding what they are agreeing to. Buyers’ failure to understand the provisions, however, may result in their waiving of important rights.
Normally, when a seller breaches a purchase agreement by refusing to convey the property, the buyer may sue the seller for specific performance, compelling the seller to convey the property. The seller may also concurrently record a lis pendens, which will make the property unmarketable until it is expunged or the seller wins the lawsuit. In fact, it is standard practice to record a lis pendens when making a claim for specific performance of a real estate purchase agreement.
With this in mind, experienced sellers frequently require buyers to waive their rights to seek specific performance and to record a lis pendens. These waivers are binding on buyers and will prevent buyers from seeking specific performance against the sellers. On the other hand, buyers may still be able to bring a claim against the sellers for money damages. This may not be an ideal option for buyers, however, because they will ultimately lose out on obtaining the property they hoped to purchase. It is therefore important to be careful not to limit your right to specific performance and to preserve the remedies of specific performance and the recovery of damages.
By. C. Mina Kim, Esq.
For more information, contact Schorr Law, APC, www.schorr-law.com, 310-954-1877, firstname.lastname@example.org