Home Buying in Edison>Question Details

B Shah, Home Buyer in Jersey City, NJ

Hello, Can a seller backout of an accepted offer - attorney review (17 days) - citing he doesn't have enough money to close?

Asked by B Shah, Jersey City, NJ Wed May 29, 2013

Offer on house - counter offer by seller - revised offer - accepted offer by seller - Attorney review - not signing contract saying he doesn't have enough money to close.

Help the community by answering this question:


Yes. Acceptance is not a contract.
0 votes Thank Flag Link Thu May 30, 2013
It's not clear whether or not both parties signed and the contract went into attorney review. In order to enter attorney review, both parties needed to sign. The attorneys review an executed contract.

If you are in attorney review, but the review process was not concluded, it is a simple process to terminate a contract. It's important to understand that only an attorney can terminate that contract for you. However, before AR is concluded, it's a simple and straight forward process.

If you have concluded attorney review and learned after the fact that the seller does not have funds to close, you will need an attorney to guide you through your options. It becomes more complicated once you have completed AR. The options depend upon the terms of the contract and what information became known when. An attorney consult is necessary to provide you advice.
0 votes Thank Flag Link Thu May 30, 2013
Deborah Madey, Real Estate Pro in ,
If you're not out of attorney review, either party can void the contract without legal ramifications. If you are out of attorney review, the process is more complicated.
Your attorney is your best guidance at this point.
One would think that the seller knew this before he accepted your offer. Any good agent will do a sellers' net to help an owner see exactly what he is getting at the closing table.
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Wed May 29, 2013
This is the time you consult your attorney.
0 votes Thank Flag Link Wed May 29, 2013
I am no attorney, but my understanding is that until attorney review is completed either side can kill the deal. I'm somewhat confused by your question. When the seller says he is not receiving enough money to close, I infer that means he can not pay off the mortgages on his property. If that is the case, then this transaction becomes a short sale which requires approval by all lein holders. What does your attorney say about this?
0 votes Thank Flag Link Wed May 29, 2013
The seller has the mortgage paid off on the house. He is living in another house. The real estate agent (dual agent) is telling me the seller doesn't have enough money to cover the closing cost so unless we revise our offer by $10k the seller will not sign the contract. The offer has been in attorney review for 17 days and the seller officially hasn't cancelled the contract - this is just verbal from the real estate agent today when we inquired about the contract. - I appreciate your response in this matter.
Flag Wed May 29, 2013
Your attorney would be the one who is really qualified to answer this question for you, but if you're still in Attorney Review, the seller can cancel the deal for any reason.
0 votes Thank Flag Link Wed May 29, 2013
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