Home Buying in Chicago>Question Details

Ariel, Home Buyer in Chicago, IL

I am buying a condo. Both parties signed the contract. During the attorneys review the seller decided to cancel the deal. Is this allowed?

Asked by Ariel, Chicago, IL Sat Jun 11, 2011

We were in the last day of Attorneys review and they have not changed the contract at all asking us for anything they just sent an email to our attorney saying they are backing out. Is this legal?

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Answers

13
Hey Ariel,

It may be legal. Does the contract allow for email notification? Was it made timely. We usually give a reason why we are cancelling a deal so the other side won't say that the cancellation was made for illegal purposes like discrimination against race, religion, etc.

You hired an attorney. You should ask him these questions.

Attorney Ranj Mohip is a Chicago real estate attorney. The information in this answer is general information and is not intended as legal advice. Further, answering this question or otherwise contributing as a member of Trulia.com does not create an attorney-client relationship. Remember--consult the best real estate attorney in Chicago or in your respective area.
2 votes Thank Flag Link Tue Jun 14, 2011
Why not? Both the seller and buyer can change their mind during the attorney review. That is what it is for, but why didn't you just ask your attorney?? It is a legal issue so there might be other things to consider that might impact the answer. Agents are not attorneys.
2 votes Thank Flag Link Sat Jun 11, 2011
Ariel, I would differ with the answers that you have received on this page. Firstly, let me say that I am not an attorney, and I am not attempting to dispense legal advice. Either party can terminate the contract within the attorney review period with good cause. The question is have they acted in good faith? Typically, when a seller backs out of a contract (particularly in this market) it is because they have received a better offer. Again, I'm not going to offer legal advice, but I will tell you that when similar things have happened on deals that I've worked on (both buyer side and seller side), when the seller attempts to cancel the contract, they're often hoping that the buyer won't put up a fight. If you do threaten to put up a fight, it makes backing out of the contract a whole lot less attractive. Discuss this with your attorney, and tell your attorney that you want to fight (if in fact you do want to). Ask your attorney to discuss with you ways to restrict them from moving on.
1 vote Thank Flag Link Sat Jun 11, 2011
During the Attorney review any party can cancel or have buyer's remorse. It could be the party did not fully understand something in the initial process.
0 votes Thank Flag Link Wed Jun 15, 2011
Ariel,
As I said before, if you want this place badly, then put up a fight. If you become annoying enough to the seller, they may just decide it's not worth the fight.
0 votes Thank Flag Link Sat Jun 11, 2011
yes it is legal
it sucks but its not worth 1 second of your time to fight , worry, re think, complain or anything.. move to the next one and consider it a blessing..something better is around the corner.. blood presure kills people
Web Reference: http://www.joeschiller.net
0 votes Thank Flag Link Sat Jun 11, 2011
Yes it is legal. I would ask your attorney why, but they really dont have to give a reason. Its a bad thing to happen to you, and they should out of courtesy tell you something, but arent legally bound to.

Matt Laricy
Americorp Real Estate
Brokers Associate,e-PRO
mlaricy@americorpre.com
708-250-2696
Web Reference: http://AmericorpRe.com
0 votes Thank Flag Link Sat Jun 11, 2011
Ariel,

If the seller's side gives you a reason, they are limited to a certain list of reasons, and you may have the opportunity to address their reason and they would have to accept. However, in most contracts agents use, an attorney can simply invalidate the contract without giving a reason. I believe that has to come from the seller's ATTORNEY though; I'm not sure if the requirement changes if the seller himself attempts to cancel the contract.
0 votes Thank Flag Link Sat Jun 11, 2011
We have been working with an attorney but they just let us know yesterday at 530 on the 7th day of review that they were backing out so we didnt have much time to talk to the attorney about what our rights are.
0 votes Thank Flag Link Sat Jun 11, 2011
Ariel,
If you working with a realtor (which you've mentioned you are), then what is your realtor saying? What advice are they giving you? You say that you are planning on talking to an attorney. Does this mean that you haven't been working with an attorney while you've been under contract?
0 votes Thank Flag Link Sat Jun 11, 2011
We do want to fight. We have been asking for the condo documents for 5 days and they keep telling us they are waiting for them and now all of a sudden they want to back out. We have already paid for inspection and appraisal which isnt much but for them to back out without a reason just seems real shady to us. I am sure they continued to show the place and got an offer that theyd rather take. But now not only are they putting me in a bad position as now id have to find a place i like in a short period of time they are also screwing my realtor to lose his commission. It seems crazy that they would be able to back out of a deal without a reason. I do plan on talking to an attorney but I just wanted to make sure that I have a case.
0 votes Thank Flag Link Sat Jun 11, 2011
HI Ariel, The easy answer is Yes, and either side can do it during attorney review with no explanation sorry to say. This happens from time to time. Check with your attorney sometimes they cancell but will accept with some other condtions that will make the deal go thru.

All the Best

Dave & Lisa
Web Reference: http://www.urhomerealty.net
0 votes Thank Flag Link Sat Jun 11, 2011
Since you are asking "Is this legal?", the best person to answer your question is your attorney, therefore consider a consultation.
0 votes Thank Flag Link Sat Jun 11, 2011
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