Don’t Reneg on your Purchase Contracts
The appellate court recently came down hard on a buyer who reneged on his purchase contract. In 1472 Milwaukee, Ltd. v. Feinerman, 2013 IL App (1st) 121191, the court affirmed the trial court’s judgment that the buyer should be responsible for losses the seller incurred when the buyer defaulted on his contract to purchase real estate.
Back in 2006, the defendant contracted to purchase a commercial building located on Milwaukee Avenue in Chicago from plaintiff for $1.2 million. However, defendant never showed up for closing in mid-November as scheduled. The closing was rescheduled, and again, the defendant was a no-show. The plaintiff re-listed the property, and eventually sold it for $911,500 in July of 2007.
Subsequently, plaintiff filed suit for the difference between the original and eventual purchase price, as well as plaintiff’s carrying costs for the eight months in the interim between when the property was supposed to close, and when it eventually closed. The judge awarded the plaintiff this amount (which included the difference in price, real estate taxes, and interest paid by the plaintiff), and on appeal, the court agreed.