You found your dream home and its in your budget. You place an offer, and the seller accepts it. Now it’s clear sailing until closing, right? But what if there is a hurdle before you reach that finish line? What if the seller tries to back out of the deal?
Can the seller back out of the deal?
The answer to this question will often depend on the wording within the real estate contract. It is common to include a provision that outlines when a seller or buyer can or cannot get out of the contract. This is why it is so important to carefully review, or even draft your own real estate agreement, to better ensure you understand what all the provisions mean and what impact the contract would have in different scenarios.
The portion of the real estate contract that likely applies in this scenario are the contingencies. These are all the different stipulations that both the buyer and seller must meet in order for the sale to move forward. If the seller is backing out as outlined within one of these contingencies, then they may be able to get out of the deal. If not, you may have legal options to hold them responsible for their attempt to back out.
What are my legal options?
You can sue for the seller to hold up their end of the contract and sell you the home. This is referred to as specific performance. You could also sue for the seller to cover all the expenses associated with the sale, referred to as damages. Damages could include the cost of any inspections, lost deposit, and temporary housing expenses.