We sold our house and signed all the papers and then came possesion day and they backed out. Can they do that legally?
2007-09-17 13:28:45 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
You should look at the contract you had them sign, if there is any recourse, it should be written in there...
2007-09-17 13:35:07 · answer #1 · answered by Art G 4 · 0⤊ 0⤋
I can imagine that is a shock for you and every seller that happens to. But unfortunatly it happens, not very often but still often enough. Yes the buyer can back out and refuse to close but will loose most likely his "good faith" money.
Was the contract written contingent to buyer's financing to certain conditions without a date until when the contingency has to be waived? In that case the buyer can back out of the contract until he, the buyer signs the final documents for the mortgage if the mortgage he was able to obtain does not meet the criteria written in the contract.
My advise would be move on, put the house back on the market, may be readjust the price and be confident that it will work out better with another buyer.
2007-09-17 15:30:49 · answer #2 · answered by Monika Wilson 4 · 0⤊ 0⤋
It's only a piece of paper. People enter and back out of contracts everyday. The question becomes do you want to pursue any remedies you have (i.e. Do you want to spend the time, money and effort to enforce your rights?) I have found it's best in most cases to call it even and start over. Whether you retain any deposit money will depend on the contract. The person holding the money is going to have to decide, if there is a dispute, or may end up handing it over to a court to decide.
In either case, he can't dispurse the funds without written consent of all of the parties!
2007-09-17 14:11:28 · answer #3 · answered by Sam B 4 · 0⤊ 0⤋
Did the buyer sign all the documents?
Unless there was a contingency in the contract to allow them to back out after signing the closing documents, no, they cannot do that.
You are entitled to the escrow money and you could sue for specific performance, but that is alot of effort.
2007-09-17 14:38:42 · answer #4 · answered by godged 7 · 0⤊ 0⤋
If final papers haven't been signed and escrow closed, they can back out, but you can probably keep the deposit/downpayment, depending on how money was held in escrow.
You should may need to consult a real estate attorney.
2007-09-17 13:35:19 · answer #5 · answered by knittinmama 7 · 1⤊ 0⤋