Selling a home can be confusing if you have never gone through the process. For example, can you change your mind about selling your home after accepting an offer from a prospective buyer? While this is a rare instance, it does happen and there are a few legal ways to back out of the deal gracefully. If you have questions, your first step should be to talk to your real estate agent.
Prove the Buyer Acted in a Fraudulent Manner
One of the legal, yet often difficult to prove, options are showing that the prospective buyer acted fraudulently. It is difficult to determine what a buyer’s intentions are unless you have everything in writing. In most cases, having an attorney review the final paperwork often determines whether there was fraudulent activity on the part of the buyer. If any legal issues arise, you can back out of the agreement legally and without fear of repercussions or having to pay hefty fines.
Find a Legal Loophole in the Contract
Another option to back out of a signed acceptance agreement legally is to find a loophole in the contract. While this is rare, it does give you an opportunity to either back out completely or renegotiate your final terms. Loopholes are often simple mistakes that are overlooked within the contract and involve the description of the property, taxes, price, or other information that involves numbers. In most instances, corrections are made and the contract moves forward for signing. There are occasions, however, when sellers may choose to use the situation to their benefit if they no longer want to sell their home.
Prove the Buyer Breached the Contract
If the seller can prove that the buyer violated specific terms of the agreement, he can withdraw from the contract. Examples of buyer violations that amount to a breach of contract may include-missing a deadline on escrow deposit or not informing the seller/lender of a change in their financial status that prevents them from paying off the amount due. However, the seller must be able to prove that the buyer willfully violated the contract, which can be proved only after some time goes by.
Urge the Buyer to Cancel the Contract
Sellers have many reasons for changing their minds. In some cases, they do not want to part with a home that holds so many memories. No matter the reason, the easiest way to legally back out of an accepted offer is to discuss the issue directly with the buyer. Persuading them to cancel the contract should be your first option. If both parties are in agreement, there is no dispute after the fact and the buyer and seller are legally released from any obligation to the sale of the property.
Any time that you decide to break a legal contract or agreement of any kind, you must have a valid reason. It’s important to take the time to consider all of your options before deciding to back out on an accepted offer when selling your home. Are you looking to buy or sell a home in the Hermosa Beach Area? Contact the experts at Brighton Escrow today. We provide the best escrow services you need.