Legal Question in Real Estate Law in California

Re: Seller needs to back out of purchase agreement

Well, of course the buyer can release you, but the question is, will they? If the buyer chooses to play hardball, they can force the sale on you by sueing for specific performance. If the contract of sale contains an attorney-fee clause, you would be liable for their legal fees and costs in addition to escrow fees, etc.

If by "pay the escrow co." you mean there will be a balance due on a deed of trust or some other lien affecting the property, a lawyer would need all the facts including whether your sale was negotiated through a licensed real estate salesperson, and the nature of the lien that can't be discharged, in order to advise you properly.

Re: Seller needs to back out of purchase agreement

Yes, the buyer can releae you, if they choose; but, did you sign a liquidated damages clauses, etc.agreeing to pay a penalty in the event that you determined not to sell? Secondly, with respect to your wanting to back out, as it stands the deal will not go through by its own terms, unless escrow gets more funds as I am sure one of the terms is that you are to deiver title free of the existing loan, and you cannot do that. So...from a practicial matter, the deal cannot go through, and the question is whether or not the buyer will want damages from you. Were I you, I would let the buyer know the situation ASAP, so they do not hire movers, etc. or incur any further damage, and then simply lay your cards on the table and hope they are sympathetic.

Re: Seller needs to back out of purchase agreement

Why did you agree to sell the property for a loss?