Cancel Your Sales Contract To Sell Your Home
You put your home on the market and then for some reason, you want to reverse that decision to sell and Cancel Your Sales Contract To Sell Your Home.
Life Happens……What can you do?
As long as your home has no pending offers, we will allow you to cancel the listing, no questions asked. With some brokerages, it may not be that easy so read your contract! All listing agreements have differing terms. Our brokerage does understand and realize life happens so we make it easy to cancel. It’s a quick signature on one form and we’re done!
Be aware that some brokerages including ours may charge you for service costs incurred which should have been spelled out in the beginning. An example would be a custom Virtual Tour or professional photos; staging services or landscaping. In any event, be informed, read your contract carefully and ask questions.
What if your property has an offer and is under contract?
Well, the plot just may have thickened a bit. Why? When you signed the agreement to accept the offer, you signed a contract and to try to just cancel that now is a breach of contract:
Breach of contract def: failing to perform any term of a contract, written or oral, without a legitimate legal excuse. This may include not completing a job, not paying in full or on time, failure to deliver goods or services as promised, failure to Sell Your House!
Here’s where it gets sticky. At this point, you may be liable for other incurred costs, lawsuits and damages. All of this should be spelled out in the purchase offer you accepted so best thing to do is consult an attorney.
Note: A Realtor in California is not allowed to offer legal advice so don’t even ask. Most they can do is mention what can possibly happen or talk from their own experience.
What can the buyer do to you?
In court, a judge just may force you to complete the sale. If you refuse, then a contempt of court action may follow and who knows, your new home may be The Big House so you may as well sell!
What exactly is “Specific Performance”?
What is Specific Performance? Here’s an article to read but basically know this: It’s a lawsuit and in a case like this, you just may lose. Why? Well a buyer may have sold their home, incurred other costs; made commitments such as moving to a new city, quitting a job (OUCH) and so on. In those cases, you haven’t much of a leg to stand on and after they win, you may not even have a chair so sit on either…..
Occasionally a seller might win a specific cause case, but typically that only happens if the seller can’t sell their home because they can’t — as in they no longer can convey a clear title.
Any other options?
Negotiate, mediate and pray. Offer to reimburse for costs and pray they are nice people however in a tight market and after they fell in love with YOUR house, fought off other buyers, and have a fair amount of skin in the game, it’s not likely their going to roll over
If you do manage to get a buyer to agree to a mutual cancellation, get an attorney to help. Its well worth an hour of their time to have them draft a letter or at least check the closing paperwork
In short…If you are a seller looking for a way out of selling your home, you need to speak to an attorney.
Breach of contract can have serious legal and financial implications. Get an attorney. Seek your agent’s advice (which should be, “speak to an attorney…”). If your agent says, “Umm, no big deal, happens all the time!” Then… go get an attorney!
Disclosure: We are not attorneys. We do not have the know-how to advise. What we are telling you is what might happen if you decide to pull out of a deal after you’ve accepted an offer.
What is our advice? Get an attorney if you want to cancel your sales contract to sell your home.