When Can I Back Out of a Deal?

Question

I have a quick question. On July 11 I received an offer on a SFR property I put up for sale. In the agreement it states that close of escrow shall be within 45 days. It's been well over 45 days at this point and we are still not closed so I am curious if I can legally withdraw the offer. I'm not seeing anything else in the agreement that clarifies when the deal can be withdrawn or what legal reasons I can do so. Any help is greatly appreciated, thanks.

Dennis Maynard · Answer

@Theresa Harris California uses escrow and title  companies to facilitate transactions for the most part.  Fundamental questions:  Did the buyer remove contingencies?  Did you issue a notice to perform?  In order to get out of the escrow, you will need to put the buyer on notice, ask them to perform, and if not, ask them to cancel escrow.  If they won't, call your attorney.

Wayne Brooks · Answer

Yes, you can. Some states may require you give them some sort of “notice to perform” with 3 days or so to close....in some states, you’d simply notify the the contract is terminated due to a breach/failure to close on their part.

Do you know if this was real buyer, or a who,sealer trying to flip it? Has there been any communication from the buyer?

Do you know if this was real buyer, or a who,sealer trying to flip it?  Has there been any communication from the buyer?

Jason Clark · Answer

Thanks Shannon, and thanks to everybody else who weighed in on this situation. Due to much of the advice given here I contacted my agent to send a notice to perform. I gave them a deadline of Wednesday 5pm to close or I was retaking possession of my property and it would not be listed for sale again. Well that got the troops in line and we closed on Wednesday! This was a great lesson learned but overall I made a good profit and now I'm going on vacation!

Happy Friday everybody!

Don Alder-LaRue · Answer

@Jason Clark

If your agent is using CAR forms, he/she will want to issue a notice for buyer for perform which gives the buyer 48 hours to put up or shut up.  Then  you can cancel the agreement.  Always read your purchase contract, it will usually answer all your questions.

Sam Shueh · Answer

Cancellation issued signed and delivered. Done

Jason Clark · Answer

Thanks for the quick responses. You're all amazing. I sent my agent a message just now and let him know I'm ready to cancel the deal if I can legally do so. Hopefully that lights a fire under someones butt to get this done and quit keeping me in the dark. I love BP! Thanks again everybody.

Shannon Wright · Answer

@Jason Clark, I am not an agent, but in my experience, you can cancel for Buyer non-performance, but you have to issue a Notice to Buyer to Perform and a Demand to Close Escrow would be a good idea, too. The buyer failing to "meet" these demands will give you the right to cancel and potentially keep the EMD, depending on the contract terms and contingencies. Make sure to let escrow know your desire to cancel so they can act accordingly and not incur any costs and such on your behalf. You want all relevant professionals on notice if your intent.

14.D. on the residential CAR contract sets out your rights to cancel as a seller. You might want to read 14.H., as well. :)

Good luck!

Sam Shueh · Answer

It should be a number of lack of communications and commitments. If you have another buyer with better terms I will let that offer go with refund.  No one likes surprise. He can sue you too. So review all correspondence documented make it sure no lawyer can place charge.  The argument is based on during 45 days there were also other parties interested and you missed the golden opportunity. As a realtor I change the status from PENDING showing to PENDING (closing) only they release all the contingencies.

Scott Henrikson · Answer

@Jason Clark there’s lots that could be going on there. If your agent isn’t communicating that’s a problem. Good or bad news you still should have communication. If your contract has a close date and you are past that you aren’t under contract anymore. Even if you want to continue to proceed your agent needs to created another document extending the transaction.

Scott Pearson · Answer

@Sam Shueh Do you get to keep the earnest money since they did not fulfill the contract?

When Can I Back Out of a Deal?

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