What happens if a seller backs out of an agreement?

Question

We recently found a for sale by owner home. We met with the sellers, made and offer, which they accepted, and we made our own purchase agreement. We are two weeks away from the agreed upon closing date and we just found out that the sellers are backing out of selling the home. They are saying it is for personal reasons. If this is the case, I think they can back out with no consequence as we did not address that in our agreement. However, if they got a better offer and decide to sell to someone else, do we have any legal leverage to retaliate? They did agree to accept our offer and sell the house to us.

Answer 1

This is why a do-it-yourself real estate deal is a bad idea. With a well-written, properly executed contract you could actually force the sale or get significant compensation. They could also force a purchase if you tried to back out.

Answer 2

They can make up many reasons not to sell you the home... I have seen people walk away at the table.    You could try to push the issue but it would be a massive undertaking...

If you find out they turn around and sell it for a higher amount... then yes you go after them.

Answer 3

It isn't just For Sale By Owners.  THis happens to all of us in the realty world.  People just change their minds.  There is something about hiring a realty agent that seems to eliminate some of that.  You'd only agree to pay an agent $thousands if you were really serious.  It shouldn't be that way, but it is.

You are correct to be suspicious about them getting a higher offer.  Just walk away.  They are being devious.  Of course, you could sue them and in 18 months (if the sellers don't ask for court date extensions) the judge will force them to sell to you.  What's the point. /

Answer 4

There is no way to answer your inquiry without reading your purchase agreement.  The language contained therein will dictate your possible avenues of action.  Now you know why you should use a real estate professional, who is well versed in the appropriate languages to solidify an agreement.