Sellers can back out of a home sale if they have a valid legal or contractual reason, but doing so without cause may expose them to legal action. After signing a purchase agreement, both parties are bound by its terms. Buyers often have contingencies allowing cancellation without penalty, but sellers face more restrictions. Situations allowing sellers to cancel include lack of a signed contract and invoking seller contingencies. Understanding contract details is crucial to avoid complications in the transaction process.
A seller can back out of a home sale, but only with a valid legal or contractual reason. Canceling without cause allows buyers to seek legal recourse.
Once both parties sign a purchase agreement, it becomes legally binding. This means that neither party can back out just on a whim.
Buyers typically have contingencies that allow them to cancel without penalty, while sellers have limited opportunities to back out and must adhere to specific contract terms.
A few specific situations allow a seller to cancel legally, such as if the contract hasn't been signed yet or if a seller contingency is invoked.
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