Ask an expert: Seller backing out of contract Colorado

Q: What happens if you’ve made an offer on a home and the seller suddenly decides not to sell?

Local Companies

SOUTHVIEW PROPERTIES LLC
303795-2902
5820 S. Windermere st
Littleton, CO
COMMERCIAL REALTY PARTNERS, LLC
303683-1711
4 East Sky Lane
Highlands Ranch, CO
MAIN STREET CENTRE, LLC.
303829-5022
2629 W Main Street
Littleton, CO
CEPEDA, ANDREW
720216-7617
692 W Canal Circle # 1011
Littleton, CO
Associated Builders & Contractors

789 Sherman
Denver, CO
Bush Development
(303) 780-9396
56 Steele Street
Cherry Creek, CO
Echo Pages
(720) 203-9099
4251 S. Natches Ct., Unit E
Sheridan, CO
Morrison Homes
(303) 798-3500
1420 W. Canal Ct., Ste. 170
Littleton, CO
Remax Horizons
(303) 564-4460
6343 West 120th Avenue
Broomfield, CO
Showcase Properties Unlimited
(303) 399-5777
4106 E. 8th Avenue
Denver, CO

provided by: 

A: In the case of most real estate deals, once you and the seller have signed a contract, neither party can back out without consequences. There are some contracts, however, that have clauses that allow a seller (or buyer) to cancel if certain conditions are not met.

Most conditions in a real estate contract are designed to protect the buyer. For example, you may make an offer conditional upon being approved for a mortgage, or pending a home inspection. If your financing falls through, or the inspector finds a termite infestation, these clauses allow you to get out of the deal without penalty.

Sellers may include similar “escape clauses” in the contract. In situations where a house is part of an estate sale, for example, the contract might state that the deal must be approved by other family members. If you accept this condition when you sign, the seller is able to back out if the condition isn’t met.

When a seller attempts to back out of a contract without such conditions, however, a buyer may be able to sue for financial damages. The buyer may even be able to get the court to order the seller to fulfill the terms of the contract. (The seller’s real estate agent, too, may be able to sue for his or her commission.) The specific consequences will depend upon the terms of the contract and the state you live in, but, in general, a seller is not entitled to renege because of a change of heart.

Buying a home is stressful enough without worrying about taking the seller to court. That’s why you should work with your agent and a real estate lawyer before you sign the contract, to make sure it does not allow the seller to back out for arbitrary reasons. If you do find yourself in this situation after the fact, contact a real estate lawyer immediately to determine your options.

Bill Yeager
Regional Vice President, Realty Sales

 

Published on January 12, 2007

Read full article at realestate.com

Featured Local Company

SOUTHVIEW PROPERTIES LLC

303795-2902
5820 S. Windermere st
Littleton, CO

Regional Articles
- Ask an expert: Seller backing out of contract Arvada CO
- Ask an expert: Seller backing out of contract Aurora CO
- Ask an expert: Seller backing out of contract Boulder CO
- Ask an expert: Seller backing out of contract Brighton CO
- Ask an expert: Seller backing out of contract Broomfield CO
- Ask an expert: Seller backing out of contract Canon City CO
- Ask an expert: Seller backing out of contract Castle Rock CO
- Ask an expert: Seller backing out of contract Colorado Springs CO
- Ask an expert: Seller backing out of contract Commerce City CO
- Ask an expert: Seller backing out of contract Denver CO
- Ask an expert: Seller backing out of contract Durango CO
- Ask an expert: Seller backing out of contract Englewood CO
- Ask an expert: Seller backing out of contract Evergreen CO
- Ask an expert: Seller backing out of contract Fort Collins CO
- Ask an expert: Seller backing out of contract Fort Morgan CO
- Ask an expert: Seller backing out of contract Fountain CO
- Ask an expert: Seller backing out of contract Golden CO
- Ask an expert: Seller backing out of contract Grand Junction CO
- Ask an expert: Seller backing out of contract Greeley CO
- Ask an expert: Seller backing out of contract Lafayette CO
- Ask an expert: Seller backing out of contract Littleton CO
- Ask an expert: Seller backing out of contract Longmont CO
- Ask an expert: Seller backing out of contract Loveland CO
- Ask an expert: Seller backing out of contract Montrose CO
- Ask an expert: Seller backing out of contract Morrison CO
- Ask an expert: Seller backing out of contract Parker CO
- Ask an expert: Seller backing out of contract Pueblo CO
- Ask an expert: Seller backing out of contract Sterling CO
- Ask an expert: Seller backing out of contract Westminster CO
- Ask an expert: Seller backing out of contract Wheat Ridge CO
Related Local Events
MULTI-HOUSING WORLD CONFERENCE & EXPO 2009
Dates: 10/1/2009 - 10/2/2009
Location: Colorado Convention Center
Denver, CO
View Details

Learn To Be Rich? Free Real Estate Training
Dates: 6/16/2009 - 6/16/2009
Location: The Golden Hotel
Golden, CO
View Details

Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin

Topics:
Advertising Family Home Services Real Estate Resources
Business Services Fashion Industrial Goods & Services Retail & Consumer Services
Career Financial Services Insurance Software
Cars Food & Beverage Internet Technology
Computer Hardware Franchise Legal Telecommunications
Construction Health Miscellaneous Trade Shows
Education Holidays Nightlife Travel
Entertainment Home Appliances Online Database Weddings
Environmental Home Electronics Pets World History