In a perfect world, sellers would list homes on the market, buyers would make offers, and deals would close in a swift and amicable fashion. In reality, it doesn’t always happen that way. In fact, sometimes, issues arise that spark contention between sellers and buyers. Some cases are resolved through negotiation while others wind up in court.
Before making an offer on a South Carolina home for sale, it’s important to understand real estate laws, such as if and when a seller can back out of an agreement. There are specific circumstances that enable a seller to change his or her mind, even at the eleventh hour, just before closing. However, in many cases, buyers have grounds for taking legal steps to force a sale or to seek financial recovery for damages.
Real estate contracts often contain contingencies that enable sellers to back out
Real estate transactions are often contingent sales, meaning that both sides agree to go through with the sale provided that the contingency is fulfilled. On the other hand, sometimes it’s the reverse—parties agree to NOT go through with a sale if a contingent issue occurs. Here are some examples of each:
- A seller agrees to sell his or her home providing he or she can purchase a new home by a certain date.
- A buyer agrees to go to closing by a specific date.
In the second example, a seller could back out of a deal if the buyer does not go to closing by the agreed-upon date. This would constitute a breach of contract. In the first example, the seller would be able to back out if, according to the contingency, he or she was unable to purchase a new home by the specified date.
What are a buyer’s options if a seller backs out?
If there is no contractually acceptable reason for a seller to back out of a real estate deal, the buyer may decide to file a lawsuit. In such cases, a buyer has several legal options. One type of lawsuit would force the sale of the home. If a buyer doesn’t want to go this route, then he or she can sue for damages.
This means that the buyer would seek compensation for financial losses, such as appraisal fees, earnest monies and other investments the buyer has made toward the sale of the home up to that point. A buyer may also sue for the cost of temporary housing, if he or she must rent a home due to the seller backing out of the deal for the new home.
Real estate contracts are legally enforceable documents
An experienced South Carolina real estate agent is well-versed in state laws, as well as contract issues. To avoid legal complications, it’s helpful to seek guidance and support from an agent to execute a sales contract. This helps protect the interests of both sides and ensure that a sales transaction will come to fruition as smoothly as possible.