Can the seller back out?

3 Replies

This might be a silly question. Can the seller back out of the contract once you are under contract? Let's say the seller decides that they don't like you after going under contract, can they just back out? Under what circumstances can the seller back out?

@Jingwen Dunford   The contract is a legally binding document. Once it is signed the only way out is through the buyer not meeting one of the conditions (ie inspection issues, financing doesn't come through).  

I've heard of a few stories on BP about sales not going through, but I forget what happened.  I know of one where the seller changed his mind and the buyer agreed and then the seller tried to sell it the next year and the buyer had put something on the title, so the seller couldn't sell it to anyone but him.

They can back out and it would be a fight to get made whole.  Probably best to just eat the home inspection cost, etc.  Just make sure to at least get your earnest money back. You could play hard ball and tell them your attorney will be contacting them if they walk but that's a lot of trouble...

@Jingwen Dunford a seller can not legally unilaterally cancel a contract. You can file a lis pendens which will cloud title and stop them from selling to anyone else. You then proceed with legal action to for them to sell this is called a specific performance suit. You need to make sure it’s worth it as the cost will be minimum of $5k to start and goes up from there.