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Is a seller trying to unlawfully back out of a real estate deal?

Wanting to buy a home is an exciting experience, especially for someone who is a first-time homebuyer. If you recently found what you believed to be the home of your dreams, you likely could not wait to sign the necessary papers. Of course, it is important to understand all the paperwork before signing anything.

Understanding the buy-sell documents is vital because there is a chance that the person selling the home could suddenly attempt to back out of the deal or otherwise does not adhere to the terms of the real estate contract. If so, it is important that you understand whether the seller can legally do that and what your options are in the event of a breach of contract.

When can a seller back out?

In many cases, the real estate contract will include contingencies that detail when the seller may have the legal ability to halt the sale of the property or choose not to go through with it altogether. The contingencies can include various reasons, such as if the seller cannot find a new place to live or if the buyer has not obtained a mortgage on the property by a certain date. While these contingencies can be beneficial to the seller, it is important that the buyer reviews those contingencies before signing.

In some cases, a seller could attempt to include any possible reason to get out of the sale in the contingencies. If a buyer signs the document without reading and fully understanding it, it could prove detrimental later. Therefore, it is wise to have an attorney go over any contracts before signing.

When are a seller's actions unlawful?

If the seller tries to back out of the sale for reasons other than those listed in the contingencies of the contract, you may have reason to press the matter further. Simply deciding not to sell after you have signed the contract and taken other steps to obtain the property typically does not hold up. Fortunately, if a seller attempts to wrongfully back out of a deal, you can take legal action.

Filing a lawsuit against the seller could allow you to work toward obtaining the intended outcome of the real estate transaction. Though such action can be long and arduous, it may be necessary to ensure that the seller does not unjustly take advantage of you. To gain information on your legal options for this type of scenario, you may want to reach out to a California real estate attorney.

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