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Under real estate law, a purchase and sale transaction is in escrow when the seller and purchaser sign a contract. The purchaser puts earnest money in an account with a third party, often a lawyer or real estate broker. These actions establish a firm agreement. So what happens if the seller wants to back out of the deal? How does it affect the buyer?

Ask a Real Estate Law Professional: What Happens When a Seller Backs Out of Escrow?

Seller Stipulations

Real estate purchase and sales agreements may include stipulations that allow the seller to withdraw for certain reasons. For example, the agreement may provide for the seller’s inability to locate a suitable replacement home or obtain consent from co-owners for the sale.

Breach of Contract

real-estate-law-Lower-Burrell-PAIf a seller in escrow refuses to go forward with the sale of their home in violation of the agreement, real estate law considers this a breach of contract. The contract may have a provision for liquidated damages, a specific amount the seller would have to pay the buyer. If not, the seller must pay an amount to make the buyer whole.

Money Damages for the Buyer

When sellers are no longer willing to sell, buyers should consult real estate law attorneys to ensure the recovery of their losses. Buyers are entitled to their earnest money, as well as losses and expenses they incurred. These expenses include home inspection, survey, and appraisal fees, lost deposits, temporary housing and storage costs, and attorney fees.

 

If a seller declares they’re backing out of your real estate contract, contact the Law Offices of Robert B. Liotta, Esq. in Lower Burrell, PA. Attorney Liotta serves the entire region, providing wise counsel and strong advocacy to protect his clients’ rights and accomplish their goals. Since 2000, individuals have counted on him to serve their best interests in real estate law matters. Allow him to do the same for you. Learn more about the firm online and call (724) 334-9870 to schedule a confidential appointment. 

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