Legal Question in Real Estate Law in New Mexico

Re: backing out of a contract

Not enough information. First, you need to look at the contract itself. Look at the contingencies and the default provisions. Is there an applicable contingency that allows the seller to back out under your particular circumstances? If not, look at the default provisions. You did not specify which state the sold property is located in. If Utah was a "Real Estate Purchase Contract" used? That version of a purchase contract specifies 3 remedies (the 1st does not require a lawsuit, the 2nd and 3rd do require a lawsuit if the dispute can't be settled): retention of the earnest money, or "specific performance" which means you have to sue but can get a court order to force the seller to comply with the terms of the contract, or sue for you actual, provable damages that directly resulted from the seller's default.

If the property is located in New Mexico, you may have the same provisions included in a standard real estate purchase contract. Again, the first thing to do is to carefully read the contract. This, of course, assumes that you do have a written contract. If you don't have a written contract but only a verbal agreement, then you are just out of luck, period.