Can a seller back out after accepting an offer? It’s inevitable. If you’re a real estate wholesaler, then you’re certainly going to experience when the seller wants to back out of the deal. It’s very frustrating, especially if you’ve already assigned the contract to your new buyer.
Maybe you’ve found yourself with one of these sellers, and left wondering what to do now. I mean, they’ve signed a contract. They should have to perform, right? The truth is, you can’t drag a seller to closing and hold their arm while they sign.
Most contracts specify the remedy for non-performance by both parties. Typically, a buyer must sue the seller for specific performance. This is a costly and time-consuming process. Most of the time, it’s not worth it. As a professional, you must take each seller case-by-case and do what you feel is the best, both ethically and professionally. You’ll certainly find yourself in situations where you will both agree that its acceptable to just call the whole thing off.
Top 4 Reasons why sellers want to back out
There are various reasons why a seller may want to back out of a contract once it has been signed. Let’s have a look at some of the most common reasons:
The Affidavit and Memorandum
There’s a way to secure your interest in the property once you have a signed contract with the seller of a property. Technically once the contract is signed, both parties are contractually obligated to perform on the deal. If you run into a situation where the seller wants to back out of the contract, then you have the option of filing an affidavit and memorandum with your local courthouse.
Watch the video below for more information on how an Affidavit and Memorandum work.
So can a seller back out after accepting an offer? Well the answer is both yes and no. Yes, of course, they have the option to. Does that mean that they won’t have to pay a fee for doing that? NO. Eventually, you’ll be compensated for the lost revenue.
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