Real Estate Law
Have Real Estate Law Questions? Ask a Real Estate Lawyer.
Good afternoon Angelica,I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today.Under CA law, once both parties sign a contract of sale, and any and all "contingencies" have been removed, then for either party to back out of the sale agreement would constitute a Breach of Contract, and the injured party could sue.A contingency is generally a clause that allows one party---usually the buyer---to terminate the agreement if for example, the home does not pass inspection, or the lender will not agree to fund the mortgage loan. It is very rare for sellers to have a contingency---though not unheard of. The seller's contingency is usually related to a purchace of a home that the seller has entered into with a third party, and the seller reserving the right to cancel the sale of their home to the buyer if the other home deal falls through.However, most buyers will not agree to such terms when they make an offer on a property.If you breach the contract of sale, the buyer can sue you and seek a court order forcing you to sell the property to them. Now in reality, the buyers rarely sue the sellers who breach, because of the cost of litigation and the time involved. They usually just move on.However, what does happen with fair regularity is that the Realtors involved with your sale can sue you for their lost commission---which is typically about 6% of the sale price of the home.So, there is a chance that you might sued for the breach, and you need to consider that when making your decision to back away from a contract of sale. I'm sorry.I wish you the best in 2013.I understand that you may be disappointed by the Answer you received, as it was not particularly favorable to your situation. Had I been able to provide an Answer which might have given you a successful legal outcome, it would have been my pleasure to do so.You may reply back to me using the Reply to Expert link if you have additional questions.Kindly take a moment to rate my service to you based on the understanding of the law I provided. Please understand that I have no control over the how the law impacts your particular situation.Thank you,Doug
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).