What happens if a buyer refuses to close on a property?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What happens if a buyer refuses to close on a property?
The due diligence period has ended and our buyer now informs us that they do not want to close on the house. They have been vague as to their exact reasons why. What can we do, the closing was set for next week.
Asked on September 23, 2018 under Real Estate Law, Connecticut
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
When parties enter into a purchase and sales agreement, that constitutes a binding contract. As a general rule it specifies the parties, the purchase price, states the closing date and lists other relevant facts about the transaction. Like other legal contracts, if one of the parties refuses to complete the transaction according to its terms, the other party may seek damages for breach of contract. Specifically, if the buyer is the one unwilling to go through with the transaction, monetary damages is the remedy that can be granted to the seller. Courts are reluctant to require "specific performance" from the buyer and force them to buy the property. They will be required to pay for all actual losses. Further, if the fair market value is worth less than the accepted offer, the buyer may have to pay the difference between the offered price and the fair market value.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.