Backing Out of Deal during Covid Crisis

[Amy Muir]

My husband and I went under contract the end of January for close date of March 31st to be our primary residence. We have financing in place and all was well until the Covid crisis halted everything. I am now worried about my husband’s job and the economic outlook and don’t feel now is the best time to move anymore.   While he is still employed I’m not so sure about a few months from now if the travel restrictions are still in place. 

My question is if we back out now, a week before closing, I know we will lose our deposit but if they decide to sue, what should I be prepared for that they ask for. Also, my agent keeps telling me they can force me to close because i have financing approved. Please help! I’ve already consulted an attorney but wanted the wisdom of you fine people and your experience to weigh in. Thank you so much!!!!

[Russell Brazil]

Yes you open yourself up to liability if you default. You can be sued for specific performance, or you could be sued for damages if the eventual sales price of the property is lower than your contract price.  While it isnt necessarily highly probable you would be sued, it is a very real possibility.  You may want to attempt some sort of negotiaon to release you from future liability.  See what you can offer the seller to release you from the contract and liability.