What can happen if you are the seller of a piece of property and a few days before scheduled closing you want to back out of the Purchase and sales agreement?
What can the potential buyer do? Can they sue the seller? What is the basis of proof the buyer would have to show in order to receive damages?
Anyone ever personally back out last minute? What were the consequences? Did you have to pay the potential buyer off?
2007-06-20 13:25:26 · 3 answers · asked by fofinia 1 in Business & Finance ➔ Renting & Real Estate
The buyer can sue for for Specific Performance and force you to go through with the deal. They can also sue you for any damages such as any monies they've paid for moving, clearing out of their old house or apartment, temporary living expenses, etc. If you are backing out of the deal to sell to someone else at a higher price, they can also grab any profit you may have gotten from the other deal.
If you want to back out, you had better be prepared to grovel and pay them whatever they demand as compensation. They're under NO obligation to accept any offer however. Remember, they can go for Specific Performance and force the sale to close. If closing is delayed and they wind up with a higher mortgage rate, you could also be stuck covering that cost for the life of the mortgage, as well as any other costs that they incur due to the delay.
2007-06-20 13:33:22 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
as stated above the buyer can sue for specific performance meaning the court can force you to sell the property to the buyer at your agreed upon price, also the court can award the buyer their attorney fees to enforce the specific performance
case in NJ where not only the buyer prevail on specific performance the judge also award attorney fees in amount of
75K to buyer side, so in the end not only did the seller have to sell at agreed upon amount, they had to pay their attorney to complaint and the buyers attorney fees losing about 150K on the deal
2007-06-20 21:08:31 · answer #2 · answered by goz1111 7 · 0⤊ 0⤋
That answer all lies upon how the Purchase Agreement is written.
If their is a clause added that says you the seller can back out at any point in time, or for certain reasons then yes. otherwise no.
2007-06-20 20:38:05 · answer #3 · answered by Anonymous · 0⤊ 0⤋