Once you have closed on the sale of your house, you typically cannot back out of the transaction legally. The closing process involves signing a contract that transfers ownership to the buyer, and this contract is binding. Here are some key points to consider:
Yes, it's perfectly legal for an estate agent to charge a withdrawal fee but, again, they have to be upfront about it before you agree to use their services. Check and double-check the contract before you sign.
But is the house really yours — or can a seller back out of a contract? The short answer is yes, a seller can cancel a contract — but only under particular circumstances. Even then, the seller will likely face consequences, as the laws around real estate contracts tend to favor the buyer over the seller.
Yes, buyers can change their minds about buying the house before officially closing on it. However, once both parties have signed the purchase agreement, it becomes a legally binding contract. You are then subject to any and all penalties outlined in the agreement if you then decide to not go through with the purchase.
If the buyer changes their mind for a reason that is not covered by a contingency, they may forfeit their earnest money deposit. For example, if the buyer simply decides they do not want to purchase the home, they will likely lose their earnest money deposit.
You can either follow the legal procedures that apply in your state—typically this means the court will order the property to be sold, and the net proceeds (after paying mortgages, liens, and costs of sale) to be divided—or you can reach your own compromise settlement.
Parties can mutually agree to modify the terms, such as adjusting the listing price or extending the duration. Termination of the agreement before its structured expiration can also be done by mutual consent, or else specific legal grounds must be met, such as breach of contract.
No penalties; the buyer typically gets their deposit back. The seller backs out without legal grounds. May be sued for breach of contract and may forfeit the earnest money deposit.
And in many cases, a home seller who reneges on a purchase contract can be sued for breach of contract. A judge could order the seller to sign over a deed and complete the sale anyway. “The buyer could sue for damages, but usually, they sue for the property,” Schorr says.
You've Changed Your Mind and No Longer Wish To Sell
It's your house — you can stay there for as long as you like. Just because you put it on the real estate market doesn't mean you're obligated to sell. However, once you enter into a purchase agreement, you do have an obligation to see the home sale through.
Most reputable agents will not charge a fee for taking your house off the market. If they do, it's usually because of at least one of these issues: The seller was blatantly taking advantage of their services — for example, if a seller received a strong offer, accepted it, then canceled to avoid paying their commission.
Sole selling rights which means that if contracts are exchanged with someone who your agent has introduced or was introduced by another agent or with someone you yourself introduced during the agency period the agent will be entitled to a fee.
In this situation, you should consult with your attorney. In some states, you can actually sue the seller for specific performance of the contract. Specific performance means that a court will order not just money damages, but will order that the seller actually complete the purchase and transfer title to you.
Cancel and transfer all of your utilities.
You do need to allot some time to cancel or transfer your utilities, but make sure you do this the day after your home has closed. Turning off utilities on the day the buyers do their final walk-through may cause your closing to be delayed and could even mess up the sale.
Probably not, but read your contract carefully. Real estate agents are typically paid when you sell your home, so if your home doesn't sell, you shouldn't owe them a commission.
In certain situations, a buyer or seller can cancel an agreement to buy or sell a property after signing a purchase agreement. If there is a breach by the other party, the nonbreaching party may have the right to cancel the deal or sue to make the other party perform or pay damages for not performing.
It is the seller's responsibility to have all furniture and personal possessions removed, and the property left in “broom swept” condition. That's why there is normally a walk through of the home before closing.
Depending on the laws of your state, you may have up to 3 years to seek legal action if the sellers KNOWINGLY hid or lied about issues in their disclosure. If a property is sold “as is” or purchased through an auction, then it is up to the buyer to do their due diligence and pay for any inspections that they choose.
You can fire your Realtor at any point in the home sale or buying process. However, the further you are on the path to closing, the harder it will be to find another agent. Additionally, if you are selling your home, you may still need to pay your Realtor commission fees anyway on the sale.
Yes, a seller can ask their listing agent to remove their house from the MLS. A seller might decide to delist their house for a number of reasons, such as a change in personal circumstances. Not just in this specific case. But only licensed agents and brokers can access and change the MLS, including removing listings.
You can change your mind after signing a purchase agreement but will likely lose any earnest money you deposited into an escrow account. You can even walk away at the closing table — before you sign the paperwork. But after closing, after you sign all those documents, the house is yours. For better or worse.
In California, home buyers can legally back out of a real estate transaction without losing the deposit if they have a contingency in place. This contingency should be written into the purchase agreement in the form of a standard legal clause.