Failed Closing in Texas: Can a Buyer or Seller Force the Other to Close?
A seller backs out the week before closing. Or a buyer stops returning calls after the option period. Can the other side make the deal happen? In Texas the answer is sometimes yes, but it depends heavily on the contract and on what you do right away.
What a failed closing usually gives you
The contract's default provisions control. Depending on the contract and who defaulted, the non-defaulting party may be able to terminate and recover the earnest money, seek damages, or ask a court to order the other party to perform. That last remedy is called specific performance. Courts treat real property as unique, which is why specific performance is available in some real estate cases when money alone would not fix the problem.
What a buyer must show to force a closing
A buyer seeking specific performance generally has to show that the contract is enforceable, that the buyer performed or was ready, willing and able to perform, and that the seller refused to close. That is why the paper trail matters: proof of financing, proof you met your deadlines, and written tender of the purchase price at the right time can decide the case.
Protecting the property with a lis pendens
When a lawsuit involves title to real property, an interest in real property or enforcing an encumbrance, a party seeking affirmative relief may record a notice of lis pendens. The notice tells future buyers and lenders that the property is in litigation. It must contain specific information, and it must be served on the other parties with an interest in the property within three days after it is filed (Property Code § 12.007). A lis pendens can be challenged and expunged, and filing one without a proper basis can create problems, so it needs a lawyer's review first.
The limitations clock
Breach of contract claims generally carry a four-year limitations period (Civ. Prac. & Rem. Code § 16.051), but the contract itself may impose earlier notice or demand requirements. Waiting also hurts in practical ways: the seller can sell to someone else, and a court is less likely to grant a remedy to a buyer who sat on their rights.
If your closing falls apart
1. Gather the contract, all addenda, the title commitment, the survey and every email and text message.
2. Write down the dates of every deadline and every notice, and who sent each one.
3. Send your own written demand or notice the way the contract requires, and keep proof of delivery.
4. Do not sign a release or a termination without understanding what it gives up.
5. Talk to a lawyer before anything is recorded against the property.
For more on how these disputes work, see our page on real estate litigation in San Antonio and Laredo, or call (210) 660-8548. If you are still planning a purchase or sale, see our real estate transactions page.
This post is general information, not legal advice, and reading it does not create an attorney-client relationship. Contract forms and deadlines vary, and exceptions may apply to you. Attorney advertising. Prior results do not guarantee a similar outcome. Christian A. Davila Cobos, San Antonio, Texas, is responsible for the content of this post.
