Most of the time the sale of a Home goes smoothly; but what if it doesn’t? When a Buyer makes an offer and the Seller accepts, absent some unmet condition, the parties have a binding contract. It can sometimes get lost in the excitement of a home purchase that the reality is you are contracting for a major six-figure purchase/sale. What if a Buyer or Seller wants out of a binding contract?
Part V: Conclusion
To summarize, residential real estate closings by and large go through as planned; however, sometimes unanticipated events occur that make either party want to back out. If you are in that case, you should first know that if an offer has been accepted you have a binding contract; the next question to ask, if you are the party wanting out, is whether or not some condition would provide you the ability to walk away; if not, then what can the other party to the contract do to enforce the agreement?
Traditionally he can seek to compel your performance, unless you have both contracted out of that through some type of “liquidated damage” provision. If you haven’t contracted for a “liquidated damages” provision- see if the seller will agree to it now. In all this, if you are in such dispute you should contact a lawyer for advice.
In this series, we will be looking into the following:
- Part 1: The Real Estate Sales Agreement is a Contract
- Part 2: What About Those “Contingencies”?
- Part 3: If No Contingencies Provide a Way Out – Then What? (If you are the Party Wanting to Close on the Home)
- Part 4: If No Contingencies Provide a Way Out – Then What? (If You are the Party Wanting Out)
- Part 5: Conclusion
By Real Estate Attorney Jeshua T. Lauka.
Jeshua is an attorney at David & Wierenga, P.C., a business law firm located in downtown Grand Rapids, Michigan. Jeshua practices in business, real estate, estate and trust work and related litigation. Jeshua has developed a focus on representing corporate and individual clients in distressed/foreclosure-related real estate matters, whether it is a corporate or construction industry client renegotiating a loan, or homeowners faced with being forced out of their homes.