Oh Boy!

[Shaun Hunt]

I have a For Sale By Owner house under contract. The closing deadline is February 29th, which is this Monday.  I received a text this morning saying:

 "After a lot of thought and discussion the past few days, my husband and I have decided to relist the house. Thank you for your understanding in that we are trying to and going to do what is best for our family.

There has been no indication for the past month that this was going to happen. The appraisal has already been submitted to mortgage guys.  The seller thought we missed the deadline of Feb. 22, which we didn't.  The seller wants to relist it for 15-20,000 more than what we have it under contract for.

I have already placed earnest money down on the home.  I have already made plans as to what to do with the property.

Should I just walk away and take it on the chin?

What are my options? If they don't show up at closing and just relist the property due to some technicality, which I can't see there is one, what can I do other than lawyer up?

Thanks in advance.

[Mike Palmer]

Just FYI: 24(c) is YOUR deadline to have YOUR financing and appraisal due diligence/conditions satisfied. If you don't have it done by that date, YOU forfeit the option to cancel the deal based on the financing and appraisal contingencies you may or may not have (see section 8 of contract). 

This is part of YOUR due diligence, and allows YOU to cancel the deal, but gives no rights to the seller to cancel. Read section 8 carefully and have them do the same, then enjoy your new house. (Another FYI, section 16.2 spells out YOUR options if they don't go through with the deal.)

Also, in light of their recent behavior, unless contractually obligated at this point I would NOT rent it back to them.