I respectfully disagree with my good friend, Erica Ramus, on this one.
I agree to the extent that If the seller has some control under the mortgage commitment paragraphs in the agreement of sale.
Suppose the seller refuses the gift equity but the buyer is able to secure financing without it?
If the buyer is able to meet all the requirements and contingencies of the agreement of sale, the seller has little recourse but to complete the transaction.
If the seller defaults, he could be sued for non-performance and perhaps be forced to sell the home. He could also be liable to pay some closing costs, including the real estate commission.
In my opinion, the "seller must find suitable housing" contingency should have been included in the original agreement. The buyer may have responded differently if this contingency existed, perhaps limiting out of pocket expenses until the contingency was met or even ending the transaction at that point.
Only in very limited circumstances can a seller back out of an agreement of sale. The ball is pretty much in the buyer's court once the agreement is signed.
RE/Max Professional Realty Inc.
Exton, PA 19341
Office: (610) 363-8444