Can a seller back out of a contract?
What would the repercussions be?  Hypothetical scenario, you, the seller, sign a contract to sell for 700k. A week later someone offers you 850k cash deal.  $5,000 has already been put in escrow including $500 independent consideration. Has been set to close in a month. As a seller, how would you handle this?
[{"id": "cwd7dmr", "text": "You may just owe them for their costs and time", "replies": [], "depth": 1}, {"id": "cwdbbwv", "text": "Talk to a lawyer.  When you get sued you will need one anyhow.  Let them review the situation and tell them what you are in for.  If you were looking to hear \"oh yeah just tell them you changed your mind \" it's a bit more complicated than that", "replies": [], "depth": 1}, {"id": "cwdg4rl", "text": "What does your contract say about default remedies?  You might be able to get out with minimum pain if those remedies were aggressively negotiated.  Most likely, though, you are stuck with the first deal.", "replies": [], "depth": 1}, {"id": "cwdkhkx", "text": "If it is already under a validly signed contract by both buyer and seller, AND the buyer has not violated any of the terms of that contract, then it is tough shit for the seller even if they got a higher offer, the previous buyer has the right to buy it at the previously agreed upon price and can probably sue for specific performance if need be.\n\nAs a seller, you could try to pay the buyer off to terminate their contractual right to buy?", "replies": [], "depth": 1}, {"id": "cwdsfsx", "text": "Ask the attorney that prepared the contract. I'll assume you're using one selling commercial property. \n\nThe contract should have default provisions. There is likely no easy way out. ", "replies": [], "depth": 1}, {"id": "cwdv3kz", "text": "It all depends on what the contract says, so speaking with a lawyer is the way to go. If it's a standard Sales Agreement it likely wont have anything specifically stated for a default. The seller can sue for \"specific performance\" meaning they can sue you to perform the terms of the contract. You'd end up selling to them with the contract terms regardless, plus incurring additional legal fees for both parties, as well as the possibility of the 2nd buyer bringing a suit for damages. \n\nHopefully, the 1st buyer defaults for some reason and you can cancel the contract. Good luck!!!", "replies": [], "depth": 1}, {"id": "cxb60jn", "text": "As a seller you can try to pay the buyer off to terminate their contractual right to buy? If it is under a validity of the signed contract by both of them. Buyer has not violated any of terms of that contract then it is difficult for the seller even if they get higher offer the previous buyer has the right to buy it at the agreed prise and probably can sue for the specific performance if they need be.", "replies": [], "depth": 1}, {"id": "cxb8sp4", "text": "Talk to your lawyer. When you get sued you will need one anyhow. Let them every thing about the situation and tell them what you are in for. If you were looking to hear to just tell them you can changed your mind. It is bit more complicated than that.", "replies": [], "depth": 1}, {"id": "cxck6nm", "text": "Consider the fact that the $850k offer may not be qualified. Suppose they break up your current deal and then re-trade you down to $650k once you go under contract. You were happy signing at $700k so don't think about what else is out there. Let the $850k guy put in a backup offer to be the \"go-to\" if this falls out of contract. Then you have more leverage with the current buyer and get to keep his feet to the fire to close the deal. **Final consideration: $5,000 deposit is LIGHT for this deal.. If that is what you negotiated to get something else in return, great! But that is not a lot of \"skin in the game\".", "replies": [], "depth": 1}]