Legal Question in Real Estate Law in California

Re: What if the buyer backs towards end of escrow

You may have a lawsuit against him for specific performance or/and damages, including the recovery of attorney fees. If you want a free consultation, please fax all documents to me at 714 363-0229. Our firm handles cases all over California. See our web page www.larryrothman.com. Our new phone number is 714 363-0220

Re: What if the buyer backs towards end of escrow

You can sue for damages, or, if there was a liquidated damages clause in the contract, you can retain the deposit. You cannot force them to go through with the transaction.

Be careful, however. There are always dozens of escape clauses in contracts for real estate. Make sure they have not used one.

Re: What if the buyer backs towards end of escrow

If the situation is simply a case of "buyer's remorse" or change of heart, and you did not have a liquidated damages provision in your purchase agreement, you can seek to recover any damages you incurred as a result of the failure to carry out the purchase, or seek to cause the buyer to "specifically perform" the contract (this latter remedy is much harder to obtain). Note, however, if you signed mediation and arbitration provisions in your purchase agreement and/or the escrow provisions, you cannot sue in court to obtain these remedies, but must carry out those provisions. You would be wise to consult with any attorney before commencing any action.