Home Buying in Los Angeles>Question Details

joyee1, Home Seller in Riverside County, CA

im selling my home,ive excepted and offer, escrow just stared and i wanna back out.Can i?

Asked by joyee1, Riverside County, CA Wed Sep 12, 2012

Help the community by answering this question:

Answers

15
Jeffrey T. Sandorf’s answer
If you have a fully executed purchase agreement you are bound by the contract. However, as a seller you have the right to cancel under certain circumstances. Has buyer made their initial deposit, provided a pre-approval letter, verification of funds and/or removed contingencies? If the buyer has not then you can issue a Notice to Buyer to Perform which would give the buyer 2 days to take the contract action...if they do not, you as the seller has the right to cancel.

Below is a section from the California Association of Realtors Purchase Agreement which covers the seller's right to cancel. Please consult with a real estate attorney to better understand your rights and to obtain legal advice.


C. SELLER RIGHT TO CANCEL:
(1) Seller right to Cancel; Buyer Contingencies: If, within time specified in this Agreement,
Buyer does not, in writing, Deliver to Seller a removal of the applicable contingency or
cancellation of this Agreement then Seller, after first Delivering to Buyer a Notice to Buyer to
Perform (C.A.R. Form NBP) may cancel this Agreement. In such event, Seller shall authorize retum of
Buyer's deposit.
(2) Seller right to Cancel; Buyer Contract Obligations: Seller, after first Delivering to Buyer a
NBP may cancel this Agreement for any of the following reasons: (i) if Buyer fails to deposit funds
as required by 3A or 3B; (ii) if the funds deposited pursuant to 3A or 3B are not good when
deposited; (iii) if Buyer fails to Deliver a notice of FHA or VA costs or terms as required by
3C(3) (C.A.R. Form FVA); (iv) if Buyer fails to Deliver a letter as required by 3H; (v) if Buyer
fails to Deliver verification as required by 3G or 3J; (vi) if Seller reasonably disapproves of the
verification provided by 3G or 3J; (vii) if Buyer fails to return Statutory and Lead Disclosures as
required by paragraph 6A(2); or (viii) if Buyer fails to sign or initial a separate liquidated
damage form for an increased deposit as required by paragraphs 3B and 25. In such event, Seller
shall authorize retum of Buyer's deposit.
(3) Notice To Buyer To Perform: The NBP shall: (i) be in writing; (ii) be signed by Seller; and
(iii) give Buyer at least 2 (or D ) Days After Delivery (or until the time specified in
the applicable paragraph, whichever occurs last) to take the applicable action. A NBP may not be
Delivered any earlier than 2 Days Prior to the expiration of the applicable time for Buyer to
remove a contingency or cancel this Agreement or meet an obligation specified in 14C(2).
2 votes Thank Flag Link Wed Sep 12, 2012
I think you mean you have accepted an offer.

And yes, you can cancel escrow as soon as buyer breaches contract. Read your contract and go by the instructions and deadlines.

Good luck!
1 vote Thank Flag Link Wed Sep 12, 2012
So, you have signed the contract, the Buyer has signed the contract and escrow has opened, the deposit check deposited.
You are under contract to sell your property. You are bound by your contract unless the Buyer backs out or allows you to back out.
Your best bet, as advised bellow, is to open a dialogue immediately, the Buyer may allow you to back out. They may ask for a penalty payment in compensation.
However, you still owe a commission to your agent, they have complied with their contract with you and they have produced a Buyer. They in turn owe a commission to the Selling agent, per their contract. They too may allow you to back out, but your Agent has expended a lot of time and money to produce this Buyer. It is unlikely they will let you out without some payment.
The Escrow company may be owed money as well.
1 vote Thank Flag Link Wed Sep 12, 2012
Joyee1,

Contractually speaking, no you can't back out of the deal unless the buyer fails to perform on some aspect of the contract. Have they given their deposit to the escrow company yet? I would talk to the parties involved starting with your realtor and explain that you want to cancel the transaction, and why. There is a chance that the buyers may mutually agree to cancel if you have a good reason for wanting to do so.

Angie Simpson
1 vote Thank Flag Link Wed Sep 12, 2012
Lots of good advice given, especially Jeff's - just curious, why do you want to back out?
0 votes Thank Flag Link Wed Sep 19, 2012
Depends on the contract. You have to be careful not to breach the contract because there are penalties.Check with your lawyer.
0 votes Thank Flag Link Wed Sep 19, 2012
Are you talking about a short sale or regular sale? You are obligated by the contract you signed but I would consult a Real Estate attorney for the legality because you are under a legal binding contract which both parties signed. Good luck to you.

http://www.FrankandSheryl.com
http://www.Under640FicoScoreLoans.com
http://www.under640ficoscoreloans.com/Pages/ContactSheryl.aspx
Sheryl Arndt, Broker – Loan Officer
DRE# 01440252
NMLS# 297251
760-486-4225
0 votes Thank Flag Link Wed Sep 19, 2012
You are most likely bound by the agreement. howver its best to consulte an attorney for the most precise legal info.
Good luck

Getting higher rents here too!


"NEAL KNOWS LOS ANGELES AREA REAL ESTATE"

WESTSIDENEAL
Neal Grusky
DRE# 01890580
Hpremiere Properties
Real Estate and Financing
10940 Wilshire Blvd. Suite 1600,
LA, CA 90024 | Office:
(800) 652-1768
neal@hpremiere.com
0 votes Thank Flag Link Sun Sep 16, 2012
Jeffrey gave the most adequate answer to your question. You should for sure talk with the attorney and buyers agent.
0 votes Thank Flag Link Fri Sep 14, 2012
Jeffrey gave you an excellent answer. Thumbs up for him!
0 votes Thank Flag Link Fri Sep 14, 2012
Thanks!
Flag Fri Sep 14, 2012
Jeffrey below has answered your question quite well!

Good luck!

Kat
0 votes Thank Flag Link Fri Sep 14, 2012
Read your contract. Talk to your agent.
0 votes Thank Flag Link Thu Sep 13, 2012
Best suggestion is to talk with the buyers and your agent before doing anything drastic. If your agent seems unsure of what your rights are, ask to talk with their principle broker.
0 votes Thank Flag Link Wed Sep 12, 2012
A good lawyer may. They will look for any missing initials or confirmation that you or your agent initialed in page 8 of the contract. Sometimes, when it's not a full executed contract, it may void it. Call a good real estate lawyer.
Until contingencies will be removed, you don't owe commission, unless it says in the listing agreement that you will pay for expenses or other items to compensate, in case you cancel the listing.

Good luck!
0 votes Thank Flag Link Wed Sep 12, 2012
Probably not.

Once you have a binding contract the buyer can sue for performance.

You can call me to discuss. 310-647-7785

Nick
01831474
0 votes Thank Flag Link Wed Sep 12, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer