Can Home Sellers Back Out Of A Deal To Sell Their Home?

351 West 21st Street, North Vancouver  Modern Living in Central Lonsdale!Purchasing and selling a home is a very emotional process. Normally one hears of buyers backing out of real estate contracts, but there are situations when the seller can and will back out of a sale.

Why would a seller back out?

A Lack of a suitable home to move into.

This arises when the sale is contingent upon the seller finding a suitable alternative property to upsize or downsize.

B A higher bid may come in at the last minute.

This can happen and can be costly to the seller if he /she is willing to pursue further.

C The seller does not want to make repairs.

Most homebuyers get a home inspection done before they sign on the dotted line. The report may contain flaws that the seller is unwilling to repair.

D An unexpected life event.

There could be a sudden death in the family or the sudden loss of employment that could make it hard for the seller to move.

E The buyer does not adhere to terms of the contract.

If the buyer fails to live up to his/her part of the deal, for instance secure financing within a certain time frame, the seller does not have to wait.

Consequences to the seller.

When a seller backs out of a contract, which is a legally binding contract, he or she is exposed to certain legal ramifications as the jilted buyer can sue for damages and breach of contract.

The major risks facing a seller backing out of a deal are financial risks, which may include:

  • Any fees incurred by the buyer such as inspection costs, survey fees etc.
  • Temporary housing costs
  • Storage costs
  • Legal costs

When a seller decides to sell the home, it is important to ensure that the sale contract contains stipulations that provide a contractual out for the seller, if for some reason the decision to sell has been rescinded.

It may seem a little unfair when the homeowner legally still owns the home but has to pay a fine in order not to sell it. It is always a good idea to consider these things before a contract is signed. Once a signature appears on the contract, the terms have been agreed upon, and there may be very little that can be done to get out of the deal.

If you are looking for your first or next home, but don’t know where to start, then visit our website http://virani.ca and browse through our database of over 70 homes.

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