Can A Seller Back Out of a Real Estate Contract?

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You've probably heard of contingencies a buyer can write into their contract that lets them get out/cancel the contract, but what about the seller? Can they back out of a contract once it is ratified? This video tells you how directly and indirectly a seller can get out of a contract.
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▬ Contents of this video ▬▬▬▬▬▬▬▬▬▬
0:00 Can a Seller Back Out?
0:29 Brand Intro
0:39 A buyer can back out with a contingency
0:53 But can a seller back out?
1:20 There are two answers
1:40 Direct
2:45 Indirect
5:07 Can a seller just get out?
5:39 I just saw it happen
8:37 Cancel it? As a seller you may still have to pay your broker
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Опубликовано:

3 авг 2024

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Комментарии : 100

@steveklemettisdragracingvi8861 2 месяца назад

Yes. If the seller never moves out or never accepts the money, then the sale can not go through.

@willalaska 2 месяца назад

Excellent explanation!

@SherriAnneGreenRealEstate 2 месяца назад

Thank you!

@tamimoncrief2264 4 месяца назад

Yep they can

@signespencer6887 4 месяца назад

A similar situation occurred to my sweetheart a few years ago. The sellers had located a house they wanted- and there were MAJOR issues with the roof and those sellers refused to budge and inch on price and also refused to fix the roof. The those sellers indirectly got out of their contract. Now the sellers of the house my sweetheart had a valid contract to buy were in a quandary- they had no place to move and couldn’t find a place to rent because they had two German Shepherd dogs. So they backed out of the contract, returned the deposit, but did not pay the agents’ commission. My sweetheart didn’t sue because he needed a house right way (having already sold his previous house) and not months or years down the road. The agents didn’t sue because ‘they didn’t want the reputation of being the agents who sued their client’. Like your buyer, my sweetheart did find another house with which he is content.

@SherriAnneGreenRealEstate 4 месяца назад

Thank you for sharing. Glad he found a house!

@Nikki_Nicole850 2 года назад

My mom’s name is Sherry Ann. Thank you so much for sharing this information! It was well needed. I’ve signed the Binding Agreement and supposed to close in 4 weeks. I haven’t found a new home… I’m very overwhelmed and want to terminate the contract. I’m going to submit a letter and see what they say… 🙏🏾

@SherriAnneGreenRealEstate 2 года назад

Good luck and make sure you are engaging your agent, title company and title attorney to make sure you handle everything correctly for your area and contract terms. Love the name!

@Nikki_Nicole850 2 года назад

@@SherriAnneGreenRealEstate Thank you!! Update: They agreed to terminate the contract. The damages are that they want back the $400 spent on the inspection and $5000 for the broker… Ended better than I thought. 💜

@SherriAnneGreenRealEstate 2 года назад

@@Nikki_Nicole850 Glad to hear better than you thought!

@kyleramkissoon9007 Год назад

I am in a similar situation and its driving me crazy. We were suppose to close last week. However the title turned up that the seller did not obtain a CO for a 2 family conversion. Yet they do not want to budge on the sale price and sell as a 1 family instead of two. Instead they ask that i take care of the CO and they woudl reduce by the cost it takes to obtain one.

@SherriAnneGreenRealEstate Год назад

Oh boy. I hope you and your agent are talking through to come up with the best solution!

@fonzario Год назад

I tried to get out of selling my home. Choices are actually stacked up against the seller to back out once you’ve signed the purchase agreement. I learned online a tactic that can get the seller off the hook. Usually the appraisal comes in lower than the offer made by the buyer. In my case the buyers made the mistake of offering us the full asking price. So I informed my realtor that I wanted the full amount or nothing. In this type of case if the buyer can’t or is unwilling to pay the difference between the appraisal amount and the amount offered, the deal is canceled. Done! But, in my case the buyers were approved by their lender for the full price offered and I had no choice but to sell my home. But the nice thing about it was I had more money to take and make a cash offer on another home so it worked out good in the end.

@SherriAnneGreenRealEstate Год назад

Glad to hear it all worked out.

@kristianFL 2 месяца назад

I had a very unreasonable buyer when I was selling a home a few years back. The Repair Request they sent over was so petty and so ridiculous that I refused them. I was advised that the buyer would likely use this as a way to get out of the contract and by this point I hated them so much that I hoped they would. But, somehow they ended up going through with the purchase even though I didn’t do a single thing.

@SherriAnneGreenRealEstate 2 месяца назад

Glad the purchase went through!

@steveklemettisdragracingvi8861 2 месяца назад

@@SherriAnneGreenRealEstate Why are you glad that the purchase went through. Selling a house in not a good thing.

@SherriAnneGreenRealEstate 2 месяца назад

@@steveklemettisdragracingvi8861 When someone puts their house on the market, they want to sell it, why else would you put it on the market for sale if that isn't the goal? So, the post I made that comment on the sale went through despite some requests by the buyer that the seller didn't agree to. So I am glad for the seller since that seemed to be what they wanted...to sell the house without doing the repairs requested.

@steveklemetti8035 2 месяца назад

@@SherriAnneGreenRealEstate I put my house on the market when I didn't want to because others such as family wanted me to and then when I signed with a realtor she was the one pushing the sale and when I moved out I was guilted into not moving back in. I want to move back in to the house but now it is much more difficult after moving out. That's why I say it is still my house even with a contract.

@SherriAnneGreenRealEstate 2 месяца назад

@@steveklemetti8035 Yes, everyone's property is their's until the sale closes. But, an agent should only be engaged to work if the owner or owners truly want to sell. That's the entire responsibility of a listing agent--to sell the house. If an owner isn't ready to sell, they shouldn't engage an agent because the agent's focus/charge/intent of signing a listing agreement is for the sole purpose to sell the property. Thus my comments that I am glad the above sale went through for KristanianFL as that was their intent.. to sell.

@VulcanLogic Месяц назад

Years ago I had a sale with an appraisal that came in high rather than low. It does happen. Somehow the seller found out about it and tried to back out because he wanted more money (it was high by about 15%). My buyer threatened to sue because this house was on the high end of my rural market and there was nothing listed that could remotely be considered a substitution. He caved and the deal closed.

@SherriAnneGreenRealEstate Месяц назад

Thanks for sharing. Yes, they can come in high. I recently had buyers have theirs come in high and that's a great feeling for the buyer--not so much for the seller. Glad it worked out for you.

@christopherjacob6209 2 года назад

I have a current situation where my offer was accepted and title found out theres 1.5 mill in unpaid state taxes and now theres a lien on the property. My hope is the seller will do a lien subordination to lift the lien and allow the property to be sold. She claims she wasn't aware as its the boyfriends tax debt, and he was just added to the title last year. Very frustrating situation

@SherriAnneGreenRealEstate 2 года назад

Oh wow, that is frustrating! Your contract should outline how issues like this are addressed. Hope it works out for you.

@edgarflores6661 2 года назад

So with interest rates going up, can the buyers sue the seller for the higher interest rate that they now have to go buy at since the seller was the one who backed out?

@SherriAnneGreenRealEstate 2 года назад

Hi Edgar, well, I've never seen that happen; it would be a question for an attorney.

@mitchyceesworld1628 Год назад

Hello, my seller signed the contract to give all the appliances and now wants to back out or give no appliances at all. What can I do

@SherriAnneGreenRealEstate Год назад

Your sister needs to work directly with her agent. Her agent will know the contract she's signed, the area laws/processes, and is there to assist in these kinds of situations.

@bernardopadilla1842 6 дней назад

My seller lied about needing to go through probate to get title to the home, said he would not be able to close for 6 months due to this. Then turned around and listed the home for sale 2 days after we signed a cancellation, this can't be legal.

@SherriAnneGreenRealEstate 6 дней назад

Frustrating. Speak with your agent and title company to see if everything was handled properly.

@rptok Год назад

Would be good if you can talk about the case where buyer doesn't want to move on but to sue the seller for specific performance. how would that go? Thanks

@SherriAnneGreenRealEstate Год назад

Speak to an attorney for advice if either party in the transaction wishes to sue.

@rptok Год назад

@@SherriAnneGreenRealEstate have an attorney..it is getting there, we are in the time of essence phase.. but would really like to hear others experiences, would be awesome to hear in your video these extreme situations as well, if possible.. ty!

@SherriAnneGreenRealEstate Год назад

@@rptok I, luckily, have not had any client sue a party to a real estate transaction that I was a part of so I honestly can't share any real world experiences. I am sure you are in good hands with an attorney.

@JeremyClark-cp3hy 11 месяцев назад

Didn't have property or house appraised and I made a mistake on the price and decision to sell it

@JeremyClark-cp3hy 11 месяцев назад

I'm selling on contract.I hired an attorney to write up the contract. Payment is due on the 1st of the month.I have had to meet him at a place where he wants to meet at. I should not have to do this. He should either mail or bring it to me. He hasn't missed a payment yet but I wasn't in my right mind when I wanted to sell.I was in drug rehab a couple of weeks after the selling. Could I hire a lawyer to help me get out of selling it for me being an addict. I am also a Veteran of a foreign war too

@VSGLife Год назад

The seller accepted my offer, but after speaking to my underwriter another offer came in and they accepted that offer instead. I was heartbroken. 😢

@SherriAnneGreenRealEstate Год назад

Frustrating. You must have had a kick-out clause in your contract. Every jurisdiction has different contract terms, so make sure you are working with your agent to ensure your contract is favorable to your needs.

@MaRa-dv2vx Месяц назад

Can I get out the selling contract if a selling broker failed to disclose about commision and failed to return my emails and calls totaly I feel abandoned by him and I have a scheduked closing please help

@SherriAnneGreenRealEstate Месяц назад

Every contract and jurisdictional rules are different. I would speak to the office VP, Broker in Charge, etc. Talk to the person who runs the real estate office with whom you have the contract with. If you can't find these people and their contact information, ask the title company or title attorney you are working with to close the property.

@midwaynights 6 месяцев назад

As seller, after 2 weeks signing the contract and before they put down deposit ,i asked for 1 month extension for closing, 2 days later they put down deposit and refused to give extension, now we don't have anywhere to go, can i cancel the sale??

@SherriAnneGreenRealEstate 6 месяцев назад

Thanks for reaching out. Speak to your agent and the closing agent/title attorney as they need to review your specific contract to see what is possible.

@jorgefoy9834 2 года назад

I am selling my house, and have found out that the seller agent made a 100K USD miscalculation on price, so the contract price is making me a loose a large of money. Can I back out of this sale?

@SherriAnneGreenRealEstate 2 года назад

Jorge, I am so sorry to hear this. You should speak with your agent as well as a title/real estate attorney to see what is possible for you in this situation.They can review your specific contract and jurisdictional policies to see what is possible. I hope it works out for you.

@maxeclan3430 Год назад

Yes this is happening to me the buyer

@SherriAnneGreenRealEstate Год назад

I hope it works out for you!

@steveklemettisdragracingvi8861 2 месяца назад

Then find a different house.

@willyluis8145 8 месяцев назад

Buyer can force to sell the property to the seller ? What happening if the inspection coming out with problems and the seller doesn’t want to negociate the repair ?

@SherriAnneGreenRealEstate 8 месяцев назад

Not sure I understand your first question. As to the inspection I address that here--the seller can refuse to do repairs: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ytsfjEqO_Tk.html Hope that helps.

@sherry240687 Год назад

Hi , What happens if the seller couldn’t provide apostolic attestation papers ( from outside US). Because the seller has a co signer residing outside the US and with bad health conditions. The lack of this document will force seller to back out from their contract? Is there any solution for this?

@SherriAnneGreenRealEstate Год назад

HI, that's a good question. I'd talk with the title company/attorney involved with the transaction. Likely they have had to address something similar or can help you come up with a solution for the specific situation.

@sherry240687 Год назад

Thank you so much

@SherriAnneGreenRealEstate Год назад

@@sherry240687 Let me know how it goes.

@grumpyschnauzer 10 месяцев назад

Could we also sue for losing the interest lock in rate? We are going through this.

@SherriAnneGreenRealEstate 10 месяцев назад

Speak to your agent to see if there is a way to negotiate with the other party on a remedy to the situation. If you are considering suing, speak to an attorney to discuss your options.

@ghostrider825 2 месяца назад

You get sued file bankruptcy no one will waste time …just move on to another house.PERIOD!

@aviswilliams3034 5 месяцев назад

Can a seller back out and take another offer when the buyer in negotiations agreed to all contingencies to buy the house? All negotiations agreements were made oral by agents. The seller (agent) stated that they would send out a draft to be signed but in less than 24hrs back out and accepted another offer without reaching out to first buyer.

@SherriAnneGreenRealEstate 5 месяцев назад

Hi, check with your agent. In my jurisdiction nothing is final until it is signed by all parties. Meaning an offer isn' a contract if it isn't signed by all parties. So, if there isn't a signed/ratified contract then there is no contract to back out of, it is simply a seller not accepting the offer presented.

@gregwhitley7980 8 месяцев назад

So here’s my problem. I am under legally binding contract (the buyer) with people who have SIGNED, with zero contingencies concerning finding a new home during any time frame. They did not show up on the mutually agreed closing date. They are now trying to back out of the contract. I am suing them for specific performance. Can I still get the house since they have zero contingencies, signed all documents for the contract, and I offered them the full price? Or do I sue them and still get the house?

@SherriAnneGreenRealEstate 8 месяцев назад

I hate that this is happening for you. I encourage you to work with your agent and a real estate attorney. They should be able to advise you to the best options based on where you live, those jurisdictional laws, and the terms and language of performance in your contract.

@joshm3342 Месяц назад

"I am suing them for specific performance." Your ATTORNEY would be the best person to answer your questions.

@TerryKey-l6k 26 дней назад

How much can a creditor sued you for breach of control?How much can they get

@SherriAnneGreenRealEstate 26 дней назад

Thanks for reaching out. You would need to speak to an attorney for such a question. They can go over your entire situation and advise what might be possible.

@nursemelody45 10 месяцев назад

My agent did not represent me the seller...i asked for rent back contingency....the home i was under contract with fell thru now im homeless 😢

@SherriAnneGreenRealEstate 10 месяцев назад

Hate hearing this. Speak to the agent and their broker to see if they can help you with a quick perhaps only temporary solution while you find your new home.

@steveklemettisdragracingvi8861 2 месяца назад

Then don't move out, don't sign over any papers. They can't force you out.

@mannyjohal1875 Год назад

Going through this right now… seller want to back out because their Va loan assumption is going to take 90 days instead of 30 what their realtor told them.

@SherriAnneGreenRealEstate Год назад

Oh no. I hope it works out!

@mannyjohal1875 Год назад

@@SherriAnneGreenRealEstatesadly, they sent us a demand letter to close escrow in 3 days when we told them that we were out of town on family vacation. We end up hiring an attorney while on vacation and had to send demand letter to honor terms per the contract. It would have been solved civically but guess now we are Both stuck in legal limbo and have to spend money on lawyers when they could have just taken money for mortgage payment which we offered.

@SherriAnneGreenRealEstate Год назад

@@mannyjohal1875 Good luck. Hopefully it will be resolved soon.

@JcCustomCreations Год назад

Hi I am from Belize and I have a current situation I made an agreement with a land consultant agent to sell my house and half of the property and subdivide but my consulting agent is a scammer I noticed she was blindly selling my whole property to a Chinese national and denies to making contact with me to talk about the issue

@SherriAnneGreenRealEstate Год назад

I hope you get that sorted out. Sounds like a legal issue where an attorney could help.

@TruthInspector 2 месяца назад

I don't understand why the seller would not make a contingent clause in case he needed to back out before the deal was completed. It could be a blanket clause that would give him a support to back out if you needed to.

@SherriAnneGreenRealEstate 2 месяца назад

Some contracts have a clause where the seller can cancel the contract by a certain date if they have to find another home first ,for example. They can make their contract contingent on finding a new home. A buyer has to agree to such a clause. But, truly, no seller should put their home on the market and waste everyone's time if they are not truly looking to sell. The buyer has to make plans too--sell their current place or cancel their lease, schedule their more, etc. Everyone should go into a contract with the intention to complete the sale.

@marilynh5487 11 месяцев назад

I'm the seller I want out. The property is own by 3 of us. I'm selling my home. I want the house back because the other real estate is too high. I want to buy my sister and mom out. It's a contingency contract. They asked for more time Im say NO. I realized I will have No where ti live.

@SherriAnneGreenRealEstate 11 месяцев назад

Make sure you are speaking with your agent about everything--hope everything works out!

@tracyking7539 Год назад

I been telling my agent to cancel the contract long ago but she hadn't. The buyer said they didnt want and appraisal or inspectionThen a month and a half later they wanted a appraisal done .The appraisal came back higer than they inspected because my agent showed them some comps😊.They asked me could l met them in the middle a said no .lm not making any money.Then they said they want 5heir money back they they said they want house and suing me.Then they asked for a second appraisal l said no because they are suing me.The agents always told me they would give me more time to find a place.Dont understand if they have a loan why did they not get a appraisal and inspection done.

@SherriAnneGreenRealEstate Год назад

I am sure this has been frustrating for you. Every contract is different, written differently, so make sure that what ever is happening is within the terms of the contract.

@ilovetacos210 3 месяца назад

Currently dealing with this. Seller backed out on the closing date because they discovered a small judgment lien in the title search, but still had plenty of equity in the house to perform. They simply didn't want to pay the lien. I hired an attorney to explain to them they can't do that, their lien is not my problem. I never cancelled the contract and they ended up sending me a "Demand to Close Escrow" out of the blue 2 months later so I quickly got my attorney to tell them they needed to mediate as per the contract so we could get a new closing date and my money moved back around. They sent back a contract cancellation after 3 days. I'm about a year into a lawsuit against them. It's a slow, painful, and expensive process, especially when they're actively evading service. They even had the nerve to check the box in the contract cancellation to keep my earnest, that's what really set me off.

@SherriAnneGreenRealEstate 3 месяца назад

Wow, what a story. Hate that happened to you, but I am so glad you are working with legal council to get this addressed.

@lanialost1320 3 месяца назад

Find another house. It's not exactly as if this seller's house is the only one in existence.

@ilovetacos210 3 месяца назад

@@lanialost1320 Nah, the whole point of a contract is legal recourse for breach. Houses I buy are where I live and how I make a living, this has cost me 10s of thousands in damages. It's equivalent to your employer saying "Hey, so we had an unexpected expense within the company and can't pay you. Sorry, yeah, I know you did the work, but 🤷"

@ilovetacos210 3 месяца назад

@@lanialost1320 keep in mind if you ever breach thinking it's okay that a buyer may be purchasing to roll over capital gains. I cashed out stocks to pay cash for this house and I owe out the ass in taxes now.

@ilovetacos210 2 месяца назад

Gonna assume you've never bought a house tbh and have no idea the expenses that can be incurred. I had travel and hotel expenses because the house is 700 miles away. I cashed out stocks and had to pay capital gains on that because I lost the ability to write off my gains as business expenses. I took out loans and had loan fees. I packed my truck and trailer with all my stuff ready to go. I lost my ability to sell my current house because I had nowhere to go. The brokerages on both sides didn't get paid, title/escrow didn't get paid. I later incurred attorney fees trying to explain to this seller the aforementioned damages she'd be responsible for and to close so I can just eat some of those fees and get the house closed. Literally the point of a contract is so the buyers and sellers can begin incurring those kinds of fees and be protected that the sale will go through.

@troyb.4101 2 месяца назад

An agent does what to get a house ready for sale? They take photos and run adds. that is about it. After they have a sales contract. The do not repair anything, and are most likely not going to do anything to a property, except place a for sale sign on it.

@SherriAnneGreenRealEstate 2 месяца назад

Well, I can't speak for every agent, but I do a lot more than take photos and run ads. I have a checklist of almost 100 items and that's the generic list. Every house is different and every situation is different so most of the time I do even more. I've designed and managed an entire remodel for a client to ensure they made the most from their sale, overseen repairs--no I don't do them as I am not a licenses contractor, I've helped clients navigate the estate and probate system, overseen a complete clean out and more. I lot can go into selling a home and I am there to guide my clients in the multitude of situations that can arise before, during and after a sale. I was just at a clients last week discussing their interior design. Like I said, we do a lot. Thanks for bringing this up so I could share!

@troyb.4101 2 месяца назад

@@SherriAnneGreenRealEstate Some rural properties are totally different from typical homes in cities. I have no neighbors, and I doubt there will ever be any either. Two sides of the 55 acres are nature preserve areas, San Pedro River basin areas. One side is Hwy 77 fontange , The north side is Indian reservation. about 80 acres. I'm sitting on Aridzona;s largest water table and can pump a staggering 1,000 gallons per minute if I wanted too. The acreage is a totally fenced Goat farm. If it was sold, it would be as is. This place should be valued at around 1.4 million based on 30k per acre. Which means few could afford it any more. I've been here 20+ years and it is paid off. If I sold I don't know where I would move too. Therefore it is not listed at all. We had it listed about five years ago, and people have made offers close to the 1.4 million. At age 62 I do not really want to move, I just want to take it easy . I have plenty of projects here all the time.

@joshm3342 Месяц назад

@@troyb.4101 Sounds like you've made the best decision: Not to sell.

@NeoSoulCrew Год назад

So in your scenario only the agents won. Lol

@SherriAnneGreenRealEstate Год назад

Well, the seller got what they wanted, they didn't get forced to sell or taken to court. So in many ways they won their position, even though they had a contract to uphold. The buyer actually found a great house in a location they had been focusing on all along. And the agents were paid for the job per the contract that the seller had agreed to.

@lisaferris1 3 месяца назад

so the buyer got nothing. must have had a terrible attorney

@SherriAnneGreenRealEstate 3 месяца назад

At the end of the video, I mention that the buyer decided not to sue and to just move on. The time, energy, and cost to sue were not worth the house she might have "won" in a lawsuit. She actually truly wanted to live in a different area so we found her a house in the original location she wanted. So, in the end, it all worked out.

@user-pu2ho4ip3d 6 месяцев назад

I The owner,walked in asked to look at the original contract. Then I tore it to shreds. Turned around and walked out. Nothing they could to do about it. Accept say butt butt butt. What contract. Keep the ripped up contract. Don't give it back, no proof. There was no money involved. Had not gone that far yet.