Home > Blogs > Lisa Hicks > Find Your Maine Oasis

We’ve Changed Our Minds. We Don’t Want to Sell Anymore.

By Lisa Hicks

Real Estate Agent with Hoang Realty

October 11, 2010 02:36 PM

We’ve Changed Our Minds. We Don’t Want to Sell Anymore.

So you've changed your mind about wanting to sell. No particular reason. You just can’t find another house you like as well as the one you own. Usually this would not be much of an issue.

However, there is a contract on your house. You've signed a contract to sell.

Now, as Sellers you can certainly change your mind about wanting to sell, but the best time to do that is BEFORE the contract gets signed, not AFTER.

Before a Purchase and Sale Agreement is ratified there are no issues to contend with. It’s ok. I can take it if you change your mind. Selling one’s home can be a very emotional issue and I get that. I’m in the business of doing what is in your best interest as my client and if you decide not to sell – for whatever reason – then that is in your best interest.

But remember when we reviewed the Purchase and Sale Agreement and we discussed how it is a binding agreement as soon as it is signed by both parties? Paragraph 18 of the Purchase and Sale Agreement is titled: DEFAULT and says, in part: “In the event of a default by Seller, Buyer may employ all legal and equitable remedies.” If you decide to back out of the agreement after the contract is ratified, then this is what you will be doing. Default. And the Buyer has the legal remedies.

I can’t give you legal advice. I’m not an attorney. But I have to make you aware that you will probably have some legal issues to contend with. If the Seller defaults, the Buyer holds the cards. The Buyer could gracefully back out and be happy with a return of the deposit. The Buyer could sue for damages. The Buyer could sue for performance. Or a host of other things. You also could be liable for commission to the real estate agents.

IF YOU DECIDE TO TERMINATE A REAL ESTATE PURCHASE AND SALE AGREEMENT YOU NEED TO GET A LAWYER.

If you are selling your home, please, please be sure it is what you want to do before you sign any paperwork.

Gavel photo courtesy of Walknboston

House for Sale photo courtesy of Real Estate Pix

Re-Blog

Comments(13)

Comment

Show All Comments

Sort:

Marcie Sandalow

Marcie Sandalow, Compass 301.758.4894 - Bethesda, MD

Bethesda Chevy Chase DC real estate

Oh my. Might be time to remind them of said paragraph. Good luck.

Oct 11, 2010 02:38 PM

Wendy Betts

RE/MAX PROGROUP - SOUTH DELTA /SOUTH SURREY & WHITE ROCK - Tsawwassen, BC

South Delta & S. Surrey Realtor

Hi Lisa - that's a very thought provoking post - and yes - the seller needs to consult a lawyer right away. Being sued for specific performance of the contract can indeed be ugly and messy - especially without a good reason (typically the seller dying is a good reason - but even then, the estate is liable to close on the contract...) Thanks for sharing - Wendy Betts - Vancouver BC

Oct 11, 2010 02:41 PM

Marchel Peterson

Results Realty - Spring, TX

Spring TX Real Estate E-Pro

Lisa, I have had that scenario happen one time. My clients were they buyers and in the process of suing for specific performance but then 9-11 happened and they decided just to stay put in Colorado for a bit longer. I'm not sure how it would have turned out otherwise.

Tish Lloyd

BlueCoast Realty Corporation - Wilmington, NC

Broker - Wilmington NC and Surrounding Beaches

Lisa ~ This is a great reminder to carefully explain every single paragraph of the Listing Agreement and the Agreement of Purchase and Sale before an offer is accepted.

I have had this happen several times, once as an Agent and twice as the Broker of Record. Twice we went to court. There are no winners in this situation.

Oct 11, 2010 02:47 PM

Jon Budish

Resident Realty - Fort Collins, CO

They'll probably be responsible for real estate commissions, and if they hire a lawyer to help them, a small fortune in attorney's fees. It would be wise to go through with the sale and move on.

Oct 11, 2010 02:52 PM

Debbie Gartner

The Flooring Girl - White Plains, NY

The Flooring Girl & Blog Stylist -Dynamo Marketers

Wow. What a mess. This is a Ssssssssssssssuper post. You're right that it is extra important for a realtor to explain this to try to avoid these ordeals. Wow.

Oct 11, 2010 03:41 PM

Kristen Wheatley

Better Homes & Gardens | The Masiello Group - Brunswick, ME

Supporting Success - Best Job in the World!

Great post and a VERY important reminder to sellers. If they want to ensure that they find an acceptable home then they need to write that into the contract as a contingency.

Oct 11, 2010 03:54 PM

Gary S. Thompson

Masters Utah Real Estate - Cottonwood Heights, UT

Broker Associate, Realtor, CRS, SRS, SFR, e-Pro

I had this same scenario, I had the seller, the buyer wasn't happy - they did employ legal counsel, but we ended up only giving the earnest money back and then paying the same amount as damages. And then with a little effort, we helped the buyer's agent find them another property. But It was a very stressful event, I made no commission, and did a lot of extra work. We got out by the skin of our teeth.

Oct 11, 2010 03:55 PM

Sharon Tara

Sharon Tara Transformations - Portsmouth, NH

Retired New Hampshire Home Stager

What a mess! With all those sellers desperate for a buyer, I can't imagine a seller throwing one away. Great post reminding sellers of their legal obligation!

Oct 12, 2010 03:55 AM

Lisa Hicks

Hoang Realty - Augusta, ME

Serving Central and Southern Maine

Thanks to everyone for the comments. Yes, it could be a very messy, expensive situation. And I think Tish put it best: There are no winners in this situation.

Oct 12, 2010 06:50 AM

Cynthia Larsen

Cotati, CA

Independent Broker In Sonoma County, CA

I haven't had this happen to me before ... sounds like a headache that doesn't go away anytime soon.

Oct 12, 2010 09:34 AM

Charita Cadenhead

eXp Realty - Birmingham, AL

Serving Jefferson and Shelby Counties (Alabama)

Lisa I hope that I never have this happen to me, but if it ever does, I'll handle it as diplomatically as I possibly can. Not saying it would be easy, but definitely a delicate situation.

Oct 12, 2010 01:57 PM

Cynthia and Charita - I was surprised at reading in the comments above how many people this HAS happened to.

Oct 13, 2010 01:49 AM

We’ve Changed Our Minds. We Don’t Want to Sell Anymore.

Comments(13)

Lisa Hicks

Service Areas

Recent Posts

Additional Information