Legal Question in Real Estate Law in California

Can a seller back out (cancel the sale) of a contract even if the buyer does not want to on a standard sale, single family home, seller claim is that the sale is taking to long (3 months) docs are at escrow waiting. But seller received a higher offer (25k more)


Asked on 1/04/13, 10:00 am

4 Answers from Attorneys

Anthony Roach Law Office of Anthony A. Roach

You have set forth the classic example of seller breach, which is when the market is rising. In most cases, a seller will breach because they have found a better offer. Of course the seller can breach, but should be prepared to be sued and pay damages to the buyer. In some situations, the buyer can also sue for specific performance.

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Answered on 1/04/13, 10:08 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

I pretty much agree with Mr. Roach's answer. Unless the buyer is somehow already himself in breach, for example, of a clause specifying a "must close by" date, or even a general "time is of the essence" clause, then the seller's attempting to back out or cancel would be a breach of the contract and, where real estate is involved, the remedy could be "specific performance" where the court orders the sale to be completed rather than awarding damages.

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Answered on 1/04/13, 10:30 am
Terry A. Nelson Nelson & Lawless

Anyone can breach or default on a contract. The question is, what you can do about it if that happens. You can either allow it, negotiate a settlement, or sue. Take your pick after consulting with an attorney to see if you have a strong case justifying spending the time and money to fight. If serious about doing so, feel free to contact me.

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Answered on 1/04/13, 5:53 pm

Every properly prepared home sale contract has a close-by date. If you are past that date the question is who is responsible. If the seller is not, and you are (or your "side" such as your lender not moving the loan along) then the seller can cancel the contract. If it is the seller's fault it has not closed, or if there are open contingencies, then the seller cannot cancel. You need to review the details of your actual transaction to get a proper answer.

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Answered on 1/09/13, 11:51 pm


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