Home Buying in 94587>Question Details

RRP, Home Buyer in Union City, CA

Can seller back out after all the contingencies are removed by the buyer.?

Asked by RRP, Union City, CA Wed Nov 7, 2012

Hi, We put an offer on a house, it got accepted, the seller even negotiated the rent. We removed inspection contingency in time and removed loan and appraisal contingency in 17 days after the contract was signed. 2 days prior to removing the loan contingency, over the weekend the seller sent an email to the agent that he wants to cancel the deal. We didn't sign the cancellation and sent him the document with removal of all contingencies after the loan approval came through. The seller without canceling the contract has put the house in market for more money. Can he do that? If we file a lawsuit will we win the house? We want the house or damages that we have suffered due to this ordeal which doesn't have a price tag. Any suggestions are appreciated.

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Answers

9
While in a contract seller legally cannot black out unless otherwise stated in the contract such as the verbage " contingent upon seller finding another house"
0 votes Thank Flag Link Thu Jan 22, 2015
Maybe the seller found another buyer offering much higher price than the one you offered him. Or the seller might sense that he could sell much higher in the near future.
0 votes Thank Flag Link Mon Sep 30, 2013
Talk with a local real estate lawyer right away and get them to review the paperwork. Chances are good the seller is going to owe you something, though they may not have to sell you the home.
0 votes Thank Flag Link Wed Nov 7, 2012
Hi Troubled buyer,

I agree with all of the comments below; however, you should be asking YOUR Realtor® what course of action to take based on the contract you executed. Your Realtor® has direct FREE access to the CAR Lawyers for LEGAL ADVICE!

-Steve
0 votes Thank Flag Link Wed Nov 7, 2012
No, typically a seller cannot cancel once a contract is signed. Are there Realtors involved? If so, Realtors all have access to legal counsel. If not, I would definitely seek the assistance of a Real Estate Attorney.

Best of luck.
0 votes Thank Flag Link Wed Nov 7, 2012
You need to seek legal advice immediately. Its hard to advise without seeing your contract and knowing your time frames. That does not sound right. Good luck.
0 votes Thank Flag Link Wed Nov 7, 2012
Thanks for the response. 2 days Before removing loan contingency he sent cancellation but we didn't sign and sent the sellers agent the all contingency removal document. All contingencies were removed on time.
0 votes Thank Flag Link Wed Nov 7, 2012
Without reading the contract, it’s impossible to know for sure. However, if you removed the contingencies in writing on time and the seller did not provide you with a Notice to Perform and a Cancelation of Contract, then, from where I sit, you are technically still in contract.

The seller cannot enter a new contract until the existing contract has been cancelled – to do so puts the seller at extreme risk. Discuss the options with your realtor – one option to consider would be to declare your intent to file a lis pendens to prohibit the seller from selling the home until the situation is resolved. That threat may be enough to get things back on track again.
0 votes Thank Flag Link Wed Nov 7, 2012
First thing you should do is to review your contract

If you have a realtor and you used the CAR (California Association of Realtors) purchase agreement, take a look at paragraph 14-C regarding Seller Right to Cancel. Generally, seller has the right to cancel if the buyer fails to meet his obligations. But if you have already removed all your contingencies and on time, he does not have that right.

Also take a look at paragraph 26 regarding mediation and arbitration. Did both parties sign? Then this is one of the ways you can get this resolved.

If seller attempts to cancel, he may be violating your rights and breaching your contract.

Get your agent's broker involved. If you are almost ready to close escrow, take a look at Demand to Close Escrow.
0 votes Thank Flag Link Wed Nov 7, 2012
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