If I request proof of funds on a Cash offer that I have accepted, and buyer cannot show a bank statement, can I move to a backup offer legally?

The purchase agreement will control this issue. Was the proof of funds a requirement or contingency of the purchase agreement? Usually the purchase agreement obligates the seller to sell the property, and it is the buyer who has the right to cancel. However, if the buyer does not perform as required by the purchase agreement, then the seller can issue a notice to perform to the buyer and then cancel the purchase agreement.

Some common purchase and sale agreements (PSAs) include a provision that allows the seller to send the buyer a notice that the period for satisfying a contingency has passed and allowing the buyer a specified amount of time, usually one or two days, to cure. If the buyer fails to cure, the contract is terminated. The California Association of Realtors (CAR) PSA form requires the use of CAR's form for giving that notice. Read the language regarding proof of funds carefully. Without having read it, I suspect you might find that it can be satisfied by a bank statement and a letter from the buyer's lender that it has approved a loan or tentatively approved the loan. If you don't have the right to terminate and the new buyer's price is high enough, maybe the old buyer would be willing to cancel the contract in exchange for a share of the extra money. If you appreciate this free advice, please remember to refer me to any friends or acquaintances who need a lawyer. Referrals are still our best source of new business. Do you have a revocable living trust to protect your heirs against probate? Probate takes forever, is expensive, and is annoying. Do your family a favor. Set up a trust, and put all your property, especially any real property, into the trust. Since it is revocable, you can change it, add to it, take property out of it, or even cancel it completely, at any time. We set up such trusts, provide a pour-over will as a back-up for any property that does not make it into the trust, provide you with blank durable powers of attorney for health care and financial decisions, in case you become incapable of making such decisions while still alive, and convey one piece of real property to the trust, usually the family home, for $1500.00. If you would like to hire me to do this, let me know, and I'll send you a list of the information I need. Dana Sack