I listed my property for sale in Bay Area, CA in mid December 2005. The property has a litigation pending between the HOA and the builder which was disclosed on the listing, along with the mandatatory statutory disclosures. On 03/06/2006 I entered into a purchase agreement with a buyer. Buyer was to have removed loan contingency on 03/20, and inspection contingency on 3/23 along with approval of all disclosures. They failed to remove either and refused to do so without giving any reason. On 3/24 my realtor sent a letter asking for removal of contingencies, reminding that time was of the essence, and at least give us a reason why they wont act per the contract. On 3/27 I gave the buyer a 24hour notice to perform on acceptance of disclosures and removal of all contingencies. They verbally refused to sign even having received it, and refused to act on it. I gave a cancellation notice on 3/31 based on buyer having failed to act on notice to perform. Escrow was to have been closed on 4/4. On 4/4, we received a call from the buyers agent stating the cancellation meant nothing to them, that they still wanted to buy the house, and that they had signed all loan docs at title,and wanted to proceed with sale. They threatened me with litigation based on "specific performance" if I refused to sell. Now, it is 4/6, and the buyer still refuses to sign any contingency removal, refuses to approve any of the disclosures, refuses to cancel the agreement, and insists on me showing up at title to sign docs or they will sue me for "specific performance" and put les-pendens on my property. The original contract had an arbitration clause. My listing agreement with my realtor also expired on 3/15.
- Can they just refuse to cancel even though they are in full breach?
- Can they force me to sell, even though they won't act on any of their contraction obligation whether it be timelines or deliverables?
- what is my recourse in enforcing the cancellation?
- I have lost opportunity to sell to others in mean time, am still not able to sell or re-list due to them not honoring cancellation, nor am I able to rent, so what are my recourses?
Your help is very much appreciated, as I at my wits end.