Finding the home of your dreams is an exciting time but it can also be stressful. For some people, one of the biggest fears is that their offer will be accepted and then the home will slip away from them.
One issue that can occur is that the seller tries to pull out of the deal after the contract is signed. Only certain circumstances legally enable a seller to back out of the contract to sell the home.
When can the seller walk away from the sale?
The contract terms determine when the seller can walk away from the sale. If the contract hasn’t been signed yet, they’re free to cancel the sale. Other times they might be able to leave it without any consequences including:
- When a buyer breaches the contract first
- Within the review period, which is usually five days
- When a buyer asks for repairs seller won’t do
- When the seller meets an escape clause’s terms in the contract
If a seller backs out of a home sale contract for any reason that’s not allowable by the contract, there are significant ramifications. Buyers may sue the homeowner for breach of contract. This can help to compensate them for the time they wasted on the home, which could be a considerable loss depending on the state of the real estate market.
Anyone who’s purchasing a home should ensure that they read the contract carefully – but even that won’t always prevent a serious dispute. If you think you may end up in litigation over a deal on a home that’s gone awry, it’s wise to explore your options with experienced legal guidance.