Legal Question in Real Estate Law in Pennsylvania

Re: Help

You asked about what happens when you back out of a real property sale.

Unless otherwise agreed the real property sale takes place on the moment that a an offer is accepted. The closing is a formal recognition of the sale that already took place. the closing is when the actual transfer of custody takes place.

When an offer is accepted the seller should seek the largest deposit that the buyer can afford and the buyer should seek to make the smallest deposit that the seller will accept. When a seller backs out of a sale the buyer can sue for specific performance (an equitable remedy) which will require the seller to transfer title. Because real proper is unique the buyer could not be "made whole" by any other "legal" means (meaning cash). When a buyer backs out the seller loses out on the benefit of the bargain and the seller instantly loses the deposit unless the offer was withdrawn because of a condition on the sale that was not satisfied. Further, the recalcitrant buyer can also be held responsible for any losses the seller incurs to mitigate the loss of the bargain. In other words, if the next buyer of the property purchases for $10K less then the balking buyer can be forced to "make the seller whole" by paying that deficit. Or a balking buyer could be forced to pay the carrying costs of a home that doesn't sell.

To sum it up, when you shake hands on a deal neither party should balk at the sale. It has already taken place.

Regards,

Roger