Homeowner wants to back out of sale

We were planning to move to another state for a new job and listed our house for sale with a real estate agent, who found us a buyer. We are set to close in about a month, and I just found out that the job fell through, so there’s no reason to move. Can we get out of the deal?

Chances are that you can get out of this, but it will cost you. You actually have two contracts to deal with: one with your buyer and one with your real estate agent.

When a seller tries to back out of the typical real estate contract, the buyer has the choice to sue for either the actual costs that were incurred in trying to buy the house, such as appraisals and inspections, or for “specific performance.”

In a specific performance lawsuit, the buyer is saying that each property is unique and irreplaceable, and just receiving money wouldn’t be fair. The buyer wants the court to force the seller to sell.

Suing to force the sale of a home can take months, and most buyers would rather be reimbursed for the money they laid out. I suggest you try to negotiate a small but fair payment to exit the deal.

Your real estate agent still will need to be paid. You likely signed an agreement that stated the commission to the agent was due when the agent found you a buyer who was “ready, willing and able” to execute the deal.

Because you are the one canceling the sale, you will owe your agent the commission.

If you just walk away from the deal without clearing it with your agent, you likely will get sued for the commission and legal fees.