Can a seller back out of a real estate contract without repercussions in Georgia?

If a seller has accepted an offer on their home in Georgia and the buyer fulfills their duties, the seller is obligated to complete the sale. However, if the buyer can’t meet contingencies and fails to uphold their end of the contract, the seller may get out without recourse.

In this blog, you will learn when sellers can—and can’t—back out of a home sale and how buyers can handle a seller who bails.

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Consequences of Canceling a Contract Outright

The choice to back out of a purchase agreement may come with added expense and potential legal consequences. Sellers who want out of an existing real estate contract are advised to do their research up-front and understand that time is of the essence if they wish to save on steep legal fees.

Buyer can sue the seller.

A buyer that has a purchase contract with a seller who wants to back out should consult a Georgia real estate attorney. If the buyer wants to take it to court, they can sue the seller for breach of contract.

Listing agent can sue the seller.

The agent’s broker may take the seller to court to compel them to pay the commission they would’ve collected on the sale had it gone through.

Buyer can force the seller to complete the sale.

The buyer may choose to sue the seller and force them to fulfill the contractual obligation. In this case, the non-prevailing party – the loser – is liable for the legal fees.

Buyer can place a lien on the property.

The buyer may record a lis pendens, a document you can file to let the world know that the buyer is claiming interest in the property. This lien makes the property not marketable and puts a stop or hold on any transactions on the property.

So, when can a seller back out of a home sale? 

Sellers can back out of a home sale without ramifications in the following circumstances:

• The contract hasn’t been signed;
• The contract is in the five-day attorney review period (unless specified in the contract, there is no automatic five-day attorney review period in Georgia);
• The seller wrote in a contingency in the contract;
• The buyer doesn’t adhere to the contract terms; or,
• The buyer requests repairs the seller is unwilling to do.

Work With a Trusted Georgia Real Estate Lawyer

If you are buying or selling real estate in Georgia, you should be working with a trusted real estate attorney that understands the real estate industry. Contact us today to ensure that your sale or purchase runs smoothly.