What happens if you want to back out of a home sale contract? This can be quite complicated since you have already entered into a legally binding pact with your buyer. Needless to say, both parties are expected to abide by the terms in the agreement, unless the contract includes clauses that would allow either party to walk away from the transaction.
So, can you back out of a home sale contract if you suddenly realized that you don’t want to sell? While backing out can have legal consequences, you can always buy yourself out of the contract. However, be prepared to pay dearly, especially if the buyer has been hugely inconvenienced by your decision.
Aside from returning the earnest money, you may also have to reimburse the buyer for other expenses incurred as a result of the failed transaction (lost deposits, inspection and survey fees, storage costs, temporary housing rental). If you are not willing to pay for these things, a court could award these costs plus legal fees to the buyer.
You should also be prepared to encounter resistance from the buyer. If the buyer is still interested in buying your home, he or she could file a lawsuit or an arbitration request to force you to sell. The buyer could also file a lis pendens against the property’s title while the case is being abjudicated, rendering the property unsellable.
Still thinking about backing out? Before you make a decision, consider reviewing all the reasons why you decided to put your home up for sale. This may help you realize that selling is indeed the best way to go.
Let Tammie help you find the best property that will suit your family’s needs. Please visit her main website at http://tammiecarter.crye-leike.com or her blog at https://tammiecarter.wordpress.com/ for more valuable tips on selling or buying a home. Request A Complimentary Comparative Market Analysis (CMA) Today!
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