Can I back out of selling my house before the close date?
I have a house on the market in Maryland and may have jumped the gun to soon. Is there a way I can cancel the contract before the house sells? I have already signed a lot of paper work and now the new buyer wants me to fix a lot of things. Can I back out without getting into too much legal trouble. The house closes in two weeks.
Thanks for your advice and help.
Tags: legal trouble
September 7th, 2009 at 3:21 pm
You can back out any time up to the time you sign the papers at closing. If you back out the buyer can sue you for performance of contract and any expenses the buyer is out of, such as loan application fees, etc.
You can back out without any liability if the buyer demands something you did not agree to. He has broken the contract, not you.
Every state is different, so you should check with an attorney specializing in real estate law in your state. He will know the legal loop holes and fine points that apply to your particular case.
September 7th, 2009 at 3:21 pm
No but you can put the skids on it by telling the buyer you are not fixing anything. He made the offer on the house as is.
He will then attempt to back out. Nothing in the contract says you have to fix what he lists. Otherwise you are stuck with the legal contract you signed
September 7th, 2009 at 3:21 pm
Absolutely. Anytime before closing. You much have to come up with some dough though. Like returning the earnest money, reimbursing the costs so far. My best solution would be to refuse to fix the property. When they made and offer it should have a clause that says they will take the property as long as there is less than say 5000 in repairs needed. If the home needs more than that it is up to the buyer to agree to pay for the difference or to back out of the deal. Most likely they had set their limit too low (1000-1500) on a smaller home and the amount exceeded that. Which is fine it will essentially void the contract for you. Simply refuse to pay the differences.
September 7th, 2009 at 3:21 pm
What does your contract specify? What does your lawyer who drew up your contract say about the contract terms? No lawyer? No wonder you’re in trouble now.
Read your contract. If those repairs are not in the contract, and the buyer wants to make changes, you might be able to get out of the contract if the buyer insists "fix or no deal." Otherwise, you could face a situation where the buyer can force you to close on time or be sued for specific performance – an expensive, nasty and losing proposition. Read your contract. If you don’t understand it or something is vague, you’d better get a real estate attorney immediately or you face costly problems.
September 7th, 2009 at 3:21 pm
Just say NO… i.e. refuse to fix the things they’re asking for. They will probably cancel the contract which they can do because of the inspection contingency in the contract. Other than that, look for contingencies that you might be able to use to cancel or what penalties you could be responsible for.
Be careful. In some states, a buyer can sue for "specific performance" to force you to sell if you don’t handle it just right.