Answers by Marty Del Cid

In California, a home sale can fall through at closing, but there are significant legal and financial consequences for the seller if they back out without a valid reason. Once both parties have signed the purchase agreement, the contract is legally binding. If the seller tries to back out at the last minute, even at the closing table, they could be in breach of contract. In such cases, buyers may have legal remedies, including: Specific performance, which is a court order forcing the seller to complete the sale Monetary damages, which can include compensation for expenses like inspections, appraisals, and temporary housing Liquidated damages, if outlined in the contract However, there are some exceptions where a seller may have a legal reason to cancel, such as contingencies that have not been met, a failed contingency, or undisclosed title issues. If you are concerned about this, reviewing the contract terms with your real estate agent or an attorney can help clarify your rights and next steps.