QUESTION
We, the Sellers of our home wants to cancelled the sale of our home after the contract was signed, but buyers do not want the sell to be cancelled.
Asked on Mar 30th, 2012 on Real Estate - North Carolina
More details to this question:
The contract was only 6 days old when we notified our agent who contacted the buyers agent and after a day and a half later we were told they were going to hire an attorney because they want our home.We also told our agent that we would give them their $200 due diligence as well as their ernest money back of $3K. Can we get out of selling our home as long as the buyers get all their money back. No where in our contract does it say that we can''t back out, but it does say the seller can obtain a lawyer for their monies they have paid...which is not an issue for us. What legal right do we have as the sellers? Buyers have stated that they intend to proceed with all inspections and appraisals that the contract gives them rights too (within their due diligence period).We have contacted the buyers (within 6 days of signing contract) notifying them they we wanted to withdraw the sale of the home and they still want to continue,does that make us "the Seller" responsible for those cost as well?
1 ANSWER
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A contract for the sale of a house is like any other contract: it binds the parties to their deal. Neither party can back away from their commitment (their contract) unless the contract itself gives them an out.
Sometimes, a party is allowed to back out by the other side because the non-canceling parties simply do not want to get into a controversy - especially one that might end up costing them money.
Your own contract will spell out the liability that you might incur if you fail to go through with the sale. If the contract allows the buyers a period of time to investigate the property, run tests, etc, that usually is at their own expense. Your asking if you can back out should not change the terms and make you liable. Read the contract to see what it says about costs you (as sellers) are required to pay. Now, if you fail to go through with the sale and the buyers sue you, they will likely get an order from a judge ordering you to sign the deed and do whatever else the contract requires of you -- and may order you to pay the buyer's legal fees. You should confer with a good real estate lawyer in your area to learn what liabilities you will have if you refuse to go forward. It is my guess that you will find it prudent to go forward with the sale.
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Answered on Apr 10th, 2012 at 5:16 PM