Putting aside the details of your particular contract . . . here's the general problem - by the time you get in front of a judge, the Seller's been carrying the home, spending money; the buyer will have had plenty of time to become incapable of getting financing, it's just not going to work.
However, in the meantime, the seller can make the (former) buyer's life miserable for a long time, the buyer will need to retain an attorney to deal with the ruckus that the seller's attorney makes.
The parties really need to come to terms and execute a rescission, so that they can both move on.
I just provided an answer to your initial post that covers all the relevant contingencies and good faith provisions you should review regarding your situation: http://www.trulia.com/voices/Home_Buying/Can_a_seller_in_Cal
This is not a forum for definitive legal answers, and in fact, the judge/jury always has the final say! I would take some time to seriously consider speaking with a lawyer at this point. At the very minimum, if your Agent is a RealtorÂ® they are a phone call away to free legal advice from CARâ€™s lawyers concerning your situation.
I'm just so sorry you are dealing with this...I'm hoping by today (Oct 15th) you've solved this issue. You should be fine, but remember that no one here (including me) is giving you legal advice....get your agent to handle this for you and let us know how it all works out.
If you are the Buyer, why do you want to cancel / backout of the contract?
Broker / Owner & Certified HAFA Specialist
Thom Colby Properties
Newport Beach, CA
Moving Lives Forward (TM)
We NEVER DOUBLE-END Transactions in our Brokerage. There is NO benefit to the Seller or Buyer and only benefits the Agent. Also, NEVER use your RE Agent / Broker as your Lender or vice versa. Also, be careful when using Real Estate Broker-owned Escrow and Title Companies - they can be loads of trouble.
888-391-5245 Direct Cell
If the buyer had released them, the seller could give them a demand to close escrow and if the buyer doesn't do it, the seller can cancel and keep the earnest money.
In short, I don't think you can force the buyer to buy the house.
If you have not signed off on your buyer contingencies, then there is not much they can do to keep you in the transaction. The contract does intend that a cancellation is for a good cause, not just changing your mind. They can attempt to sue you for "specific performance" but it does not sound like they have any leverage in your case.
I always suggest you talk with a real estate attorney, especially because they have threatened to sue you. You want to make sure you have read your contract correctly. It sounds like you have, but then again, I can only base my advice on what you have written here.
Also, your good faith deposit is likely to be held up for quite some time until you and the seller both agree to release it. You can't just get it back if you cancel. The seller has to agree to release it.
Good luck and I hope your situation is resolved amicably.
Prudential CA Realty
I am not an attorney but my understanding is...
They can not 'force' you to purchase; and, since both parties signed, the liquidated damages clause indicates what should be the compensation that you (the buyer) would owe the seller in case of your default.
Since you have not signed off on your contingencies, you may have a case to not lose your earnest money deposit- but if they take you to court & if you don't have a good reason to back out (just changing your mind or finding a better deal/home would probably not be considered good reasons to a court) the court may still award the damages to the seller, especially if you have grossly exceeded your time periods (the contract stipulates that 'Time is of the essence'.
Best of luck to you,
You need to read the contract carefully as in most contracts, if the buyer does not let the seller know there is a pronblem or they want to back out within teh specified time, that contingincy is automatically waived by the buyer. this is common with home inspections and mortgage contingincies.
You should meet with a local attorney to review your contract to let you know what you options are.
We wrote you on the first post earlier that if you do NOT have an executed contract, a contract signed by ALL parties in the transaction, then you do not have an agreement by law. All real estate contracts MUST be in writing. That means signed, too. In addition, if the contract is out-of-date, then it's null and void.
GOOD LUCK and please help us to fine-tune our answers by giving us more information.
Scott Miller, Realty Associates, Boca Raton, FL