Q: Are there any qualifying reasons a buyer can back out of an accepted real estate offer without negative consequences?
My daughter, her husband and their three children live in Nevada, and they made an offer on a home In Missouri. The seller accepted the offer and escrow is scheduled to close in mid-January. They got hit with huge medical bill for their son, and they no longer have the down payment. They advised the realtor who told them they have to follow through with the sale or the seller will sue them for breach of contract. Do they have any recourse? If forced to go through escrow, it is probable the sale will fall through due to the loan not funding. They are trying to do the right thing and be up front about their situation
A:
The buyers should have a Missouri attorney review the contract right away. There may be unexpired contingencies that would provide a proper basis to terminate the contract. For example, financing and inspection contingencies.
If the buyers breach the contract the sellers can sued for specific performance or if the sellers later sell the house for less they can sue for the difference plus any other damages they’ve incurred. I also assume the buyers paid earnest money that is being held by the title company.
Any Missouri-licensed attorney with real estate experience could review the contract. It would be wise to engage one.
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