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Can a real estate seller back out of an offer contract, if no provision exists within the contract?
Anonymous2 views3 answers
buyer provided offer contract, seller signed, two days later seller expresses remorse and wants to renegotiate. buyer has no interest in renegotiating. buyer is concerned about racking up related costs, such as surveys and inspections while seller is still calling about renegotiating. a mediation clause is provided within the offer contract. also, should seller obtain attorney representation for mediation? should buyer proceed as prescribed by the contract until there is a breach by the seller? how should buyer communicate back to seller?
Without seeing the actual contract, it is hard to say. If you made an offer to purchase the property and the dealer signed it, then it sounds like he is on the hook. If he were to renege on selling the property to you, he would be liable for all of the costs that you incurred while trying to realize the transaction. You could also sue for specific performance on the contract meaning that the seller would have to sell you the property as per the agreement.
The first thing you should do is talk to your real estate agent about the problem. They can talk to the listing agent about the contract and hopefully settle it there. If that doesnt work, consult with a local attorney and show him/her the contract.
If an offer was made in writing, and the seller signed the contract, then likely there is a contract between the parties. This assumes that all the essential terms of the agreement are set forth in the document. If the mediation clause covers the type of dispute now present (which actually is not a dispute, but seller's desire to rescind the contract) then the parties have obligated themselves to mediate. An attorney would be needed at the mediation only to the extent that legal issues must be addressed. If you are going to talk business points, the lawyer is not essential. If a lawyer is consulted in advance then you will know the legal issues involved and how to respond at mediation. If the Buyer is going to stand on the contract, then it should move forward with the agreement and let the seller know that the seller will be responsible for those costs if the contract is breached.
