We were told to just sue for specific performance, you have an easy case and will be in and out in 6 months. The seller is devastated and threatens to take legal action against you following your last minute change of mind. But unlike buyers, sellers can't back out and forfeit their earnest deposit money (usually 1-3 percent of the offer price). Nearly all 50 states have laws requiring sellers to advise buyers of certain known, material defects in the property, typically by filling out a standard disclosure form before the sale is completed. 2 Answers Ken J. A signed purchase agreement is a legally binding document. The Legal Risks of Backing Out of a Signed Real Estate Contract. The short answer: Yes, there are circumstances under which a seller can back out of a contract. A seller can’t just “back out” because they feel like it. As such, backing out could open the seller up to financial repercussions and/or a lawsuit. Apparently the seller went to an attorney to try to get out of the deal. But for the seller, backing out of a deal too late in the game can be considered breach of contract, and the buyer can decide to sue the seller if he decides not to move forward. We offered to "sell" access via our driveway, seller said they would not pay a cent. In most states, the seller has an implied equitable lien on real estate that has been transferred to the buyer for any part of the contract price remaining unpaid. That said, are there statutory provisions that allow the seller to sue for backing out of buying a house? Can a seller sue the buyer for backing out of the house purchase? A signed real estate transaction contract is a legally binding document, so if a seller wants to back out after the contract is signed, they stand to risk being exposed to certain legal ramifications. When a seller backs out of a real estate contract, he faces a more severe sanction. Depending on the jurisdiction, this responsibility can override an "as is" clause contained within a purchase contract. To put it plainly, you can get sued if you back out of the purchase of a house. You may be contractually obligated to buy the flawed home, but you likely have an out. The lien is a right to have the unpaid balance paid out of a sale of the property. Can the seller sue us for backing out of contract? Both homebuyers and home sellers typically have contingencies — contract clauses that spell out which conditions must be met for the home sale to happen — that can give them the opportunity to walk away from a transaction. Seller's Lien. I suspect the attorney told him he was in breach of contract and would be exposing himself to a lawsuit, and this … If you decide to cancel a deal when the home is already under contract, you can be either legally forced to close anyway or sued for financial damages. Correct. It is complete B.S. The seller. home-selling real-estate. Anonymous on Wed Mar 26 2008, 8:00PM VIEW. Can a seller cancel a real estate contract? I don't know what exactly was said but suddenly the deal went back on track and we closed. Sellers on the fence about moving in the midst of the pandemic should try to make a final decision before going under contract with a buyer. This, of … Just like buyers, sellers can get cold feet. Two years later, we got the house, the judge dismissed the case "with prejudice" meaning it was dismissed permanently (and in our favor). the seller is backing out, if you have the time, money, sure pursue it, if you really want to find a suitable home asap, I personally would just focus on that.