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Can seller back out after they accept?
I made an offer on a house and the seller accepted it. Then a week later they said they want to stay another month and want to pay rent. We said no and now they aren't accepting our offer. Can they do that?
Asked By Charlene N. | Fort Lee, NJ | 1232 views | Buying | Updated 3 years ago
Answers (9)
Briahna Savage
Keller Williams NY Realty
The rules in every state are different but its best to seek legal advise on this question.
Especially is contracts and earnest money was provided to the sellers side of the transaction.
-Briahna Svagae
Licensed Realtor NY & PA
[email protected]
Especially is contracts and earnest money was provided to the sellers side of the transaction.
-Briahna Svagae
Licensed Realtor NY & PA
[email protected]
- 3 years ago
Helpful (2)
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Amanda Courtney
REP Realty Group
A seller can only back out if a specific Contingency isn't met (e.g., they can’t find a new home) or if the buyer breaches the contract terms. Once a contract is "Fully Executed" and past the attorney review period, a seller backing out without cause faces "Specific Performance" lawsuits, where a judge can legally force the sale. If they try to walk for a better offer, they are often liable for the buyer’s inspection and appraisal costs, plus the agent's full commission.
- 2 weeks ago
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Grant Nulty
Berkshire Hathaway HomeServices Fox & Roach Realtors
Hi Charlene, in New Jersey this actually comes down to attorney review. Even if the seller accepted your offer and signed the contract, the deal usually isn’t fully binding yet.
In NJ there’s a 3-business-day attorney review period after both sides sign the contract. During that time, either the buyer’s or seller’s attorney can cancel the contract or request changes for basically any reason.
So if you said no to letting them stay another month and their attorney disapproved the contract or cancelled it during attorney review, they can legally walk away from the deal. Once the deal is out of attorney review, that’s when it becomes binding and much harder for either side to back out.
Not saying it’s great practice, but legally it does happen sometimes during that stage.
In NJ there’s a 3-business-day attorney review period after both sides sign the contract. During that time, either the buyer’s or seller’s attorney can cancel the contract or request changes for basically any reason.
So if you said no to letting them stay another month and their attorney disapproved the contract or cancelled it during attorney review, they can legally walk away from the deal. Once the deal is out of attorney review, that’s when it becomes binding and much harder for either side to back out.
Not saying it’s great practice, but legally it does happen sometimes during that stage.
- 5 days ago
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Jamie Moreng
Move with Moreng @ eXp Realty LLC
Charlene,
Great question. As many have mentioned, this is largely influenced by timeline. If both parties had attorney representation a week in atty review seems like a long time from my experience. If you were still in review, they the sellers can absolutely back out of this obligation.
Once the executed rider is in place, the inspection & appraisal contingency are satisfied, then & only then would there be a more likely scenario where both buyer and seller have obligations to fulfill on the completion of the sale.
Great question. As many have mentioned, this is largely influenced by timeline. If both parties had attorney representation a week in atty review seems like a long time from my experience. If you were still in review, they the sellers can absolutely back out of this obligation.
Once the executed rider is in place, the inspection & appraisal contingency are satisfied, then & only then would there be a more likely scenario where both buyer and seller have obligations to fulfill on the completion of the sale.
- 2 years ago
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Santiago Valdez
Compass - Chicago - River North (Kinzie)
Hi Charlene, if you have an attorney review period in your contract, that period is for both the buyer and also the seller; any of them can suggest changes to the contract which if not satisfied can terminate and get their earnest money back if some is involved. That is also the importance of finishing attorney review as quickly as possible for both buyer and seller.
- 3 years ago
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Karrie-Ann Versace
Coldwell Banker
Hi Charlene,
If you are still in Attorney Review the seller can still back out. It is important to find an attorney that can get you out of Attorney Review completed quickly. Mine is done in 2-4 days tops.
If you are still in Attorney Review the seller can still back out. It is important to find an attorney that can get you out of Attorney Review completed quickly. Mine is done in 2-4 days tops.
- 3 years ago
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Andrea Alummootil
Keller Williams Park Views
Charlene,
The seller has the right to change his mind anytime during the transaction. If it is not out of attorney review, he is not liable for any damages or costs incurred by the buyer. This seems like the seller is not sure what they want.
The seller has the right to change his mind anytime during the transaction. If it is not out of attorney review, he is not liable for any damages or costs incurred by the buyer. This seems like the seller is not sure what they want.
- 3 years ago
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Edwin Lora
United Real Estate North Jersey
This will depend on what step of the transaction this is happening, during Attorney review this can be possible, but after you are under contract, your attorney would have to advise you on that. Edwin Lora Realtor® in NJ
- 3 years ago
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Rashi Talwar
BHHs Fox & Roach 675 Martinsville Rd, Basking Ridge, NJ 07920
Hi Charlene,
In New Jersey, till the time you are in attorney review both seller as well as buyer can back out without any obligations. However, if you are out of attorney review then there should be some substantial reason to back out.
Thanks,
Rashi
In New Jersey, till the time you are in attorney review both seller as well as buyer can back out without any obligations. However, if you are out of attorney review then there should be some substantial reason to back out.
Thanks,
Rashi
- 4 days ago
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