Our buyer backed out of our contract

We sold our house as is for a very good price. The buyer made the first offer 15k less than the list. Within twenty four hours of that he came back and said that he really wanted the house and would give us full price. He didnt want us to show it to anyone else that might buy it so we didnt.He said that he was going to remodel it and resell it. Two days before our option period was up he came back and said that he wanted to back out unless we took a 25k less price. What can we do doesn't this fall under special provisions for us to sue him?

1 Answer

First and foremost, wonder if you had a listing agent involved? If so, that's your place to start on this question. If you did not have an agent or attorney involved, you should probably take the fully executed sales contract to an attorney for their opinion. Wonder if you provided the sales contract or your buyer did? If there was no written contract, there was no binding agreement, as verbal promises are not legally binding contracts in real estate. You don't mention if the buyer gave you any earnest money. In MOST cases, a buyer who backs out of a purchase without legal cause forfeits his earnest money and the seller keeps it. As far as legally compelling a buyer to perform on a contract if he doesn't want to, it's not an easy thing to do. You really need to talk with a local real estate attorney for more specific answers to your questions. Hope this helped you, Ted