Can I be sued for breach of contract if there’s an abstract judgement against me.
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Can I be sued for breach of contract if there’s an abstract judgement against me.
Hi, I had a property under contract and during the process the title company
discovered I have a judgment lien against another property I own. The judgment
lien was paid in full but a release of judgement was never file by the creditor.
The lawyer who worked on my case contacted the creditor’s legal team to get this
resolved. We’re still waiting to clear the title after 3 months. During this time
the contract date expired, and now, the buyer file a complaint for breach of
contract. The buyer never put down a deposit or earnest money. There’s nothing I
can do until the judgement is cleared. My hands are tied. Does he have a legal
case. Is the contract voided and am I legally responsible for this if it’s taken
this long to clear the title. I’m in Houston, TX by the way. Thanks.
Asked on September 30, 2019 under Real Estate Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
If you could not close on time for any reason, including a judgement which is still recorded against you, you were in breach of contract and could be sued by the buyer for any losses he suffered (e.g having to rent someplace else to live and/or store his belongings) due to your breach. However, if the buyer breached first--for example, if the contract required him to put down a deposit or earned money, but he never did--then he can't sue and win: once a party breaches, he can't enforce the contract against the other party. (He can try to sue, but you would have a strong defense if he was in previously in breach.)
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