Seller Backing out of Contract of Sale

[nelliekelly]

Is it possible for a seller to back out of a contract of sale and what are the possible consequences?

[IGotRealEstate]

I know there is an legal obligation with a full price offer. Consequences are determined in the court room

[kkraft]

IN the U.S. laws differ from state to state. Each state has different contract forms, so to answer this question without knowing where the property is and what the contract says is impossible.

[Jim Messenger]

First, I am not a lawyer and I do not give legal advice. The parties to the contract should seek the advice of an Attorney licensed in the state the contract was written.

Now that all the legal stuff is out of the way...

In Arizona a seller can never be forced to sell. If a seller backs out without cause a buyer may sue for damages. They can't force the sale but they may recover actual damages. I have heard that many states have similar policies.

Jim

[Breckenridge Real Estate]

I am in Colorado and our contracts call for “specific performance” on the part of the seller.

In my market a woman once refused to close on the sale of her home. The parties went to court and the judge order the woman to perform on her contract. She refused and the judge sentenced her to a week in jail for contempt of court. At the end of the week the judge brought her back into his court room and again ordered the woman perform on her contract. She refused again and he sent her back to jail for another week. At the end of that second week they went through it again and the woman decided to honor her agreement.

I just love that story!

[ResaleBroker]

Through experience I've learned there are two (2) key ingredients in every lawsuit; The Judge and the State ...in no particular order.