Posted by Dave on July 01, 2006 at 16:02:14:
I’m a real estate agent in TN, not an lawyer. If you communicated that you wanted to cancel your offer BEFORE you knew the offer was accepted you should be OK. You have no escrow money involved, so nothing to lose there. It is rare for any action to be taken against someone who backed out on a SIGNED and ACCEPTED contract. My disclaimer: I am not a lawyer and this is not legal advise.
Backing out of signed contract - Posted by Kim
Posted by Kim on June 24, 2006 at 17:00:15:
I signed a real estate contract for a house in Davenport FL but do not have the owners returned signature yet and have not paid any escrow deposit yet. What could happen if I decide now to not purchase the property?
Re: Backing out of signed contract - Posted by DoubleJ (FL)
Posted by DoubleJ (FL) on July 06, 2006 at 14:56:04:
I want to move to that area. Can I have the address to the house, or the phone number for the seller? Sounds like they may be motivated now!
Seriously, I am looking to buy over there for my personal residence and open a new office in Kissimmee.
Buyer is almost NEVER sued for spec. perf. - Posted by John Merchant
Posted by John Merchant on July 01, 2006 at 22:48:41:
Because of attorneys fees and court costs*, almost never does it happen that a jilted Seller, no matter how tight he may think his P & S is, actually hires a lawyer and files a suit for Specific Performance against the slide-away Buyer.
Oh, I see and hear this threat all the time, but I’ve seen it and heard it so much over the years, I know a lot more about the odds against it than the Seller.
So I wondn’t waste another minute even thinking about this as you’re not likely to get sued.
Whereas a jilted Buyer frequently sues to force the sale of the RE to him, sellers just don’t do it.
*Also he’d have to pay his lawyer upfront, a sizeable fee, and then he’d likely find another, more interested buyer the next day.
Re: Backing out of signed contract - Posted by BTI
Posted by BTI on June 26, 2006 at 11:38:13:
Kim
Check with someone knowledgable in you state. In mine you need offer and acceptance, but for acceptance to be valid it needs to be communicated back to the buyer, at least verbally after the seller signs.
Say an agent presenting an offer gets it signed by the seller, he would then call the buyer saying congradulations you have bought a house. That call is part of acceptance and you have a contract, but however if it is late and that agent doesn’t make that call and decides to wait until morning to call, and gets to the office only to find a message from the buyer saying they changed their mind, there is not legal acceptance even though the sellers signed the contract, and there is no deal. Your states laws are probably similiar because contract law across the nation seems to be basically uniform.
You seem to be aware that the seller signed so if it were my state, it would appear off the cuff that even though you don’t have a signed copy yet, there has been offer and acceptance.
BTI
Re: Backing out of signed contract - Posted by John
Posted by John on June 25, 2006 at 12:04:54:
Yes, Carol’s right…you really do NOT have a contract that could be enforced by either you or the S until all items agreed to and signed.
But to nail it down, I’d send the S & escrow co a certified letter clearly stating that since S did not respond with signed agreement, there is no REC and you’re therefore terminating any and all dealings between you…and demanding your earnest money back if one was paid by you.
Re: Backing out of signed contract - Posted by Carol
Posted by Carol on June 25, 2006 at 08:39:05:
I believe since you made the offer, but did not receive acceptance from the seller that you have the right to cancel the offer because a contract is not valid unless you have both offer and acceptance in writing. Any real estate lawyers out there to verify this?
Re: Backing out of signed contract - Posted by Kim
Posted by Kim on June 25, 2006 at 15:19:13:
Thank you John. No escrow money was paid by me and the contract stipulates that electronic communication was acceptable.