Can a home buyer stop the seller from selling to another buyer?

If a home seller is under contract with a buyer and tries to sell to someone else, what can the first buyer do?

If the seller is able to complete the transaction with the second buyer, there is nothing that the first buyer can do to get the property. They would be able to recover their deposits and any other costs however.

If the original buyer wants to stop the sale to someone else, they can use an attorney to file suit against the seller for specific performance, and also file a notice of lis pendens (which means “pending suit”).

If a court decides the first buyer is entitled to specific performance, the second buyer would be bound by that ruling.

The filing of a notice of lis pendens would make it difficult for the seller and Buyer #2 to close on their contract because the existence of the lis pendens notice would be a cloud on title that would make it difficult, if not impossible, for Buyer #2 to obtain title insurance on the property and/or get a loan.

Previous
Previous

Getting legal access to a landlocked property

Next
Next

Does the home buyer or seller have to satisfy a lien?