Legal Question in Real Estate Law in California

Can I be sued for backing out of escrow after all contingencies have been removed?


Asked on 4/11/13, 1:54 pm

5 Answers from Attorneys

You sure can, although if you are the buyer the seller may be limited to keeping your deposit. If you are the seller the buyer can choose to sue you either for money damages or for a court order that you complete the sale.

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Answered on 4/11/13, 2:02 pm
Anthony Roach Law Office of Anthony A. Roach

Yes, yes you can.

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Answered on 4/11/13, 2:02 pm
Terry A. Nelson Nelson & Lawless

If you breach any contract, you can be sued.

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Answered on 4/11/13, 2:57 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Why would there be any doubt? If you're in escrow, it's because you have a contract. If you fail to perform your obligations under the contract, it's likely the other party will sue you. If they don't, they are likely to request or demand some other kind of settlement. Also, keep in mind that enforcement of real estate contracts can involve a judgment for "specific performance," meaning that the defendant isn't merely liable for the plaintiff's money damages, but can instead be required to carry out the terms of the breached contract. Specific performance is more often required of a losing seller, but could also be the penalty for a buyer who defaults.

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Answered on 4/11/13, 8:21 pm

Mr. Whipple is incorrect on one point. You must elect between specific performance and money damages if you are the plaintiff. You cannot get both.

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Answered on 4/12/13, 8:12 am


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