is it possible to back out of a contract of sale of real estate 3 days before closing?

Question

i believe that i went into the contract not fully understanding what i was getting myself into. my original lawyer had a stroke and referred us to contact one of his colleagues. this colleague, my current attorney, has not been fully available to me. initially, he intimidated me into believing that if i breached the contract i would" definitely get sued, and lose, and possibly lose my house still." therefore i agreed to push forward.

however about two days prior to one of the buyer's radon test on my house, i found out something that could turn my whole situation around. i no longer wanted to sell the house. i needed an out. i think i have one because in the adendum to the contract of sales it states that if it will cost the buyer or seller and excess of $500 to remedy a defect or condition then either party may declare the contract null and void.

do any lawyers or students or whatever out there think that i can withdraw from this contract. please any information will be helpful

Answer 1

You don't have a leg on which to stand here. If the buyer is willing to take the house without asking you to remedy the radon issue, you have no recourse. You are misreading your contract to sell. You might be able to back out IF they insist that you repair the issue.

If you do not complete your legal agreement, you can be sued for breach of contract and what is called "specific performance". Do NOT take this lightly. If these buyers expended money in preparation for this move, sold their house in anticipation, cancelled a lease, or any such similar, you can be held liable for these costs for your refusal to complete the contract.

Your attorney is mostly correct. The only error he may have made is in claiming that you definitely would get sued. That decision rests with the buyers. However, if they DO sue, chances are strong that they will prevail.

As a side note, spadezgurl22 is totally wrong. Once you have closed a real estate deal, there is NO option to reverse that deal without the consent of the other party.

Answer 2

You need to consult a lawyer - if not your current attorney, find another - there are plenty of them out there. Don't trust any advice from someone who hasn't seen the sales contract.

Keep this in mind, however ---- a "defect" provision in the sales contract is typically considered a contract-killer for the buyer, not the seller. Even if you refused to fix the defect, the buyer may have the option to fix it themselves or agree to take the house as-is; if so, then you might still be on the hook to sell the house.

Breaching a sales contract is rarely a good idea; if you do, be prepared to front up to $5,000 (or more) for a legal retainer when you're sued.

Answer 3

Your attorney is telling you that if the reason you want out of the contract is not a valid one, then you are in breach of the contract. If it is not a legitimate reason, say you just want out because your original plans have changed, then there will be a breach.

If the real reason is because the defect is more than $500 and you have a legal addendum (one that is prepared by the Escrow Officer who was instructed to do so by the sellers agent) that states if a written report (inspection report) states that to fix or repair said item will be more than $500 will make the contract null and void then you may be right.

You must make it clear that the reason to end the contract is of the defective nature as you state.

Buyer can request earnest money returned as well.

Answer 4

In regards to addendum with the repair clause: If the repair is requested of you, the seller, and it is in excess of $500, you can state that you will not repair more than that amount and it's on the buyer to either absorb the repair costs or cancel the contract.
If the repair is requested from the buyer and they refuse to do more than $500, and the repairs are higher than that, you can state you are not absorbing the cost and they can either absorb the cost or go along with you killing the deal.

Answer 5

I even have been an agent/broking provider for thirty years. i think of the biggest situation with maximum domicile sellers is they "shoot themselves of their own foot". once you first checklist and have the valuables waiting you will get a "rush" of very inspired and qualified shoppers. After which you will get a plenty smaller sort of showings and the showings you get would be much less inspired. additionally in maximum components of the U. S. there's a quantity cycle of genuine assets sales. maximum ensue from the initiating of Spring until some month until now college starts off. Then it falls off a sprint until only until now Thanksgiving or so then it falls off much extra until Spring. some components have a distinctive cycle and of direction there are residences bought on a daily basis of the twelve months. i think of your agent is attempting that may be useful you.

Answer 6

yes, u can always back out of your contract, u have up to 30 days after closing to reneg on ur offer. i would call this lawyer and express your concerns and seek legal advice on this matter. he is representing you so he should have ur best interest at heart. there might be some penalties involved in breaking this contract. so be careful before u go through withur decision.