The short answer is yes! You can be sued by the seller for backing out of a deal. If you back out of the contract for reasons that are not covered in your contract, you probably will lose your earnest money at the very least.
When a dispute arises its generally in every one’s best interest to try and work out the differences. In my experience most sellers are not prone to suing the buyers. Suing a buyer is not something that is lurking in the back of a seller’s mind. They want to move forward just like the buyer and move into their new home.
To be honest, in this sellers’ market a seller would not have to wait very long before the next buyer is at their door making an offer.
Of course, buyers do on occasion get cold feet. The idea of being responsible for a mortgage and the maintenance of a home can be overwhelming. Some buyers continue to look for other homes even after receiving and accepted offer. If you make an offer on another home after receiving an accepted offer, the seller will more than likely pursue damages if you try and back out of the purchase.
If the buyer decides to back out, the seller has a couple of options to help ease the sting of losing a deal. Because, the seller could have expenses they have incurred for moving, deposits, etc.
The seller may decide to hire a lawyer to seek compensation, retain the earnest money, or enter a new deal with a new buyer.
If you’re planning to back out of a real estate contract for any reason, it’s best to talk to your real estate agent, or and an attorney about your options.
By R. Jones
