Legal Question in Real Estate Law in Michigan

Re: Can Seller Back Out?

The right of either party to terminate an agreement will depend upon the terms of the agreement. Real estate purchase agreements usually include certain contingencies which must be met before the parties will close. These provisions also usually state that one of the parties has the right to terminate the agreement if the contigencies are not satisfied within a particular amount of time.

The time lapse between the approval of financing and the seller's declaration that the agreement is terminated suggests that other factors are present that will affect the rights of both the seller and purchaser. Often, the parties expect that they will advance money or take other actions in reliance on the deal being concluded, and the agreement should state whether those costs will be reimbursed if the closing does not occur. If the contract does not address this issue, then your right to recover the amounts paid will depend upon whether the seller breached the agreement or committed some other legal wrong, such as fraud.

The agreement, and all related documents, should be reviewed by an attorney who can analyze all factors and advise you of your rights. You should contact an attorney as soon as possible, in the event that the agreement provides deadlines for responding to the seller's statement that he will not honor the agreement.

This statement does not constitute legal advice and should not be relied upon as an analysis of your legal rights and obligations. Other facts and circumstances, which could not be considered here, might affect your rights and obligations.

Stephen Scapelliti

Couzens, Lansky, Fealk, Ellis, Roeder & Lazar, P.C.

39395 W. Twelve Mile Road, Suite 200