I signed a contract to buy a condominium, and now I cannot afford to go through with it.
November 3, 2008

Q: I signed a contract to buy a condominium, and now I cannot afford to go through with it. The developer is threatening to sue me unless I close. Can the developer force me to buy the condominium?

A: If your contract of sale gives the developer the remedy of specific performance, then the developer can file a lawsuit against you and ask the court to enter an order for specific performance, which is essentially an order compelling you to close on the sale. While some courts have entered orders for specific performance against defaulting buyers, the enforcement of these orders is problematic. A court cannot order a buyer to do something which he or she is financially unable to do. For this reason, developers often seek both specific performance and monetary damages in lawsuits against defaulting buyers. A better resolution of these matters is for both parties to agree on a reasonable settlement before getting into litigation.

If you have questions, please contact:
John Wise

jwise@tandllaw.com
(410) 752-2468