Can a seller back out???
We put an offer on a house the people accepted, we signed all the papers through the real estate company and even got the keys early, the people who currently own the house have a mortgage against the house and now cannot get financing to cover the extra cost. We only found this out a week after both parties had signed the papers we are now fifteen days away from closing and they still haven't even consulted their lawyer about this problem so my lawyer is saying to go ahead with everything on my part so I have signed my commitment to mortgage through my bank got insurance on the house and signed the papers at the lawyers.....everything on my part is done can the sellers back out before closing legally if they cannot get their financing?
Amanda,
This is a situation best referred to an attorney for their advice.
Good luck
I don't know Canadian real estate laws but in California you can seek arbitration, mediation or sue (depending if you forfeit your rights to go to court) for damages. Although it will take a long while before you see any satisfaction.
If the owners have a mortgage against the house, the house is not free and clear.
You might be picking up their tab.
With contigencies not being met like the mortgage against the house not being removed, what will likely happen is that the deal will fall out of escrow.
Hope everthing turns out for the best.
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