Seller breached contract… what do we do now?

Seeking Advice Forum
1

I’ll try to keep this short, but it’s a complicated situation.

We were supposed to close on a property today that includes a home, a 2500+ sqft shop, and a large pole barn (which is full of junk). The shop was previously used for growing marijuana commercially, with equipment like a mini-split AC, grow lights, HVAC system, water tanks, and more.

Our one condition in the contract was that the shop and everything in it stayed as-is. We agreed to leave the pole barn untouched as long as the shop remained intact.

But when we did the final walkthrough today, the shop had been completely gutted. The mini-split, grow lights, vents—everything valuable was removed, and the place was trashed. We found out that the seller’s agent told the seller they could take whatever they wanted, which goes against the contract.

Now we’re at a loss. The shop’s value has dropped significantly, and it will take a lot of work to restore it. Should we hire a lawyer?

Edited to add:

Exact wording from the contract:

PERSONAL PROPERTY: Only the following personal property, in “AS-IS” condition and at no stated value is included: (describe)
ALL EQUIPMENT AND ITEMS IN SHOP SHALL REMAIN.

The seller’s agent admitted fault and said they’re willing to give up their commission. We do have an agent, but we’re first-time homebuyers and wanted to hear some other opinions.

2

Did you sign the closing documents? If you did, you accepted the property as it is.

If you haven’t, don’t sign and start negotiating. You might need to walk away if it’s not a fair deal.

1 Like
3

Uma said:
Did you sign the closing documents? If you did, you accepted the property as it is.

If you haven’t, don’t sign and start negotiating. You might need to walk away if it’s not a fair deal.

We haven’t signed yet. Everything’s on pause for now.

4

@Tatum
Right now, you have leverage. Make sure you have everything documented with photos, and get an estimate from a company that sets up grow rooms. You can push for a price reduction equal to the cost to restore the shop to its original state.

Your agent should be fighting for you. Hopefully, they can get the seller to cover the cost or at least negotiate a fair reduction.

5

@Wynn
We’ve got photos of how it looked before, including the listing that mentioned the mini-split AC. It’s all in the contract, so we’re in a decent position. Our agent is on it, but we’re feeling pretty devastated.

6

@Tatum
Hold out for the shop to be restored or get a significant price reduction. With the written condition in the contract, you’ve got a good case. I hope your agent can get it resolved.

7

Tully said:
Yes, hire a lawyer.

Why? Just tell the seller you won’t close unless they compensate you for the missing equipment.

8

Don’t close! Get a lawyer. The seller breached the contract, and you can either walk away or negotiate a significant price reduction. Make sure to document everything.

9

Do you have an agent? They should be able to handle this before you need to hire a lawyer.

10

I’d ask for at least a $50k price reduction. You have to factor in the cost of cleanup, repairs, and replacing everything that was taken.