There are many different types of purchase and sale disputes that can arise in a real estate contract agreement. If a seller backs out of the deal after the buyer has waived contingencies, it’s called a “breach of contract”. Maybe the seller has changed his mind about selling his home or perhaps he has received a better offer on the house after accepting a written offer from a buyer. The seller may cause a delay in delivering title to the real estate. If details about specific detrimental features of the property have been withheld from the buyer and buyer signs an earnest agreement without knowledge of these issues, it’s considered fraud on the part of the seller. There may be boundary disputes with neighboring parties or just loud and offensive neighbors. Home Owners’ Associations are often rife with infighting, posturing for power and backbiting. These issues must also be disclosed to the potential buyer.
Result: Buyer files suit asking Court to order seller to sell the property as agreed, also damages from out of pocket expenses OR the buyer may ask the Court to allow him to back out of signed purchase agreement with no penalty.
If buyer backs out without good reason, seller can pursue damages. Damages can be difficult to prove therefore many purchase contracts include a liquidated damage provision.
This gives the seller some recourse of action when the buyer backs out for no good reason and the seller is left with a piece of real estate, either a parcel of land, a commercial building or residential building that has not sold, having passed on many other potential buyers and their offers on the real estate.
If you wish to back out of a sale or purchase or need to enforce a real estate agreement, you need to consult with an attorney to determine the best strategy for pursuing your action. The attorneys at Webb & Ord have years of experience litigating real estate disputes. We have represented both buyers and sellers. Our astute professionals will fight for your rights in negotiating with the other party. We have a discerning eye to understand what is negotiable and what must be presented to the Court system in a trial setting. Give Eric Webb or Eleanor Ord a call at (323) 462-3736 today for a free consultation.