Q: What are the consequences if buyer is backing out of contract because mortgage payment is higher?
Buyers realtor reached out saying buyers can’t linger go through purchase because mortgage payment is higher. Seller realtor stated they can’t since they have a signed contract, buyers realtor said ok we will do inspections then they can walk away. Is that even possible? Sellers realtor says just cancel and move forward to our back house on the market because not much we can do. Is that correct?
If your transaction is written on the Missouri Association of Realtors form contract that many Realtors use, then closing is likely contingent on financing as well as inspections and possibly other factors. If any of these contingencies is not met the buyer is able to cancel the contract without penalty.
But no matter what, the answer to your question is in the contract. If you are not sure whether the buyer has breached the contract you should have an attorney review it.
Ronald J. Eisenberg agrees with this answer
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.