can a home buyer change their mind and not buy a house for which an offer agreement was signed?

Question

Buyer agreed to buy house "as is." Can buyer still back out before closing, or do they have to go through with the deal?

Answer 1

they can still back out of the deal

Answer 2

Hello, we are going through same issue. Our buyer decided to try and back out since he did not get the exact loan he wanted. All the contingencies where met. He was approved for 100% financing. All this after going through a house inspection, survey etc... Basically he got cold feet and is finding ways out of the contract.

I have been talking to my lawyer and yes you can sue. If the buyer refuses to sign over the earnest money you can sue for that. You can also sue to make them close, money lost since you took the house off the market and might of lost since you could have had another potential buyer. Also the difference between your sale price and the one that your original buyer had agreed too. So if the original buyer offered 250,000 and you end up getting 245,000 you can sue for 5,000.

The problem is though if it is worth it. You can have your house on the market while your suing them only if he does not have intention to still buy the home. If he does than you may just want to get the earnest money and move on.

Hopefully things will work out for you. It is hard to believe that people can't take responsibility for their actions and that good people have to pay for it.

Answer 3

Assuming you are the seller here, any buyer can never be dragged to a table and forced to purchase a property, even if they have signed all the required documentation indicating that they will purchase.

That being said, as the seller, you have the right to sue them for specific performance, breach of contract, and financial damages you may have incurred based upon this buyer changing his/her mind. Certainly, you are in an excellent position to retain any earnest money they may have put down with the offer, but you are not limited to accepting that as a final settlement.

If you feel that you have suffered considerable financial loss due to this situation, I advise contacting a qualified real estate attorney for further counsel on how to proceed.

Answer 4

If the buyer made the offer, and you accepted it, and both of you signed a writing evidencing the deal, and the resulting agreement had no contingencies that would allow the buyer to back out of the agreement, then the answer is no, the buyer cannot back out of the deal without legal consequences.

If all you have is the buyer's offer, which you haven't yet accepted, then the buyer is free to withdraw the offer at any time.

Answer 5

Usually they can back out but will loose whatever they put down. For example, when you signed the purchase and sales you might have put down as much as 5K. You would loose that and it would be the sellers compensation for his inconvenience. Could he sue you for more? Maybe.
Did you get a home inspection? You have a certain amount of time to request certain things be fixed before you buy it.

Answer 6

Well, I would argue that there was never a contract. The offer clearly states that acceptance requires a deposit of earnest money. If you never made any deposit, then you never accepted. What does the seller think? If he thinks you two have a contract, then you may want to point out that clause, and let him know that there never was a contract.

Answer 7

yes you can back down but you will not be refunded any money you have put down. l've done this twice both times l've lost the $1000 deposit l put down. But sure and think things over before you invest your money in a home. be sure it's what you want.it will not effect you credit either if you back down before closing.

Answer 8

They can change their mind and back out up until "closing."

Answer 9

maybe but you might not get your ernest money back