Legal Question in Real Estate Law in Minnesota

Re: Real Estate Purchase Aggrement

This depends on the reason the purchasers want to cancel and what the purchase agreement says.

For example, if there is a financing contingency and the purchasers are unable to get the financing described despite reasonable efforts, then they can cancel. A similar situation often comes up if there is a contingency for sale of the purchasers home. Another possible contingency is for home inspection.

If the purchaser is canceling for a reason not allowed as a contingency in the purchase agreement, then they may be breaching the contract. If it is a breach of contract, your legal options are to sue for damages or to compel the purchasers to finish the purchse. However, sometimes it is doubtful whether the costs and disruption of a lawsuit (it will probably delay you selling your house to someone else) are worth what you might actually collect from the purchaser.

If the purchasers are not canceling for a contingency allowed in the purchaser agreement, you can e-mail me directly at [email protected] with more details and I can tell you a little more about your options.