When a Texas homeowner puts a “for sale” sign in the yard, the weeks or months that follow will include a lot of real estate issues. Sellers must be ready to vacate their home if potential buyers are prepared to make an offer. They will also have a ton of paperwork to navigate if they happen to get one or more offers on the house, including a purchase contract. Legal problems can arise if a seller signs an agreement, then tries to back out of the deal.
There are, in fact, several legitimate reasons why a seller might want to back out of a home sale. Whether an individual is on the selling or buying end of a home purchase, it is wise to learn more about such issues ahead of time to avoid complications down the line. Texas has a number of laws regarding real estate transactions to which agents, sellers, buyers, loan officers and others must adhere.
A seller can back out for numerous reasons
Here are some legitimate issues that may prompt a seller to change his or her mind about selling a home to a particular buyer:
- Seller added a contingency to the contract stating that the sale hinges upon him or her being able to purchase a new home before a certain date
- Buyer failed to meet time constraints or other contract requirements on time
- Purchase included a review period, and seller changes mind during that time
If a seller backs out after a purchase agreement is signed, it might be a whole different ball game, depending on exactly what occurred. Either the buyer or the listing agent may decide to address the matter in court.
Seller might have to compensate a buyer or pay agent agreed-upon commission
If a seller refuses to go through with a transaction after a purchase agreement is signed, it could spark legal trouble. In such a case, the listing agent representing the seller may still be entitled to a commission. A buyer who agrees to let the deal go may also be entitled to compensation for the loss. Such issues can be complex and may be easier to resolve by getting an experienced attorney involved.