Can seller back out of contract before closing in california
Can a seller just back out like that? If so, what good does a contract do for you? A: Well, a contract is a contract. More specifically, and as my law school contracts professor would define it, a contract is simply an agreement between two or more people who the law will enforce. When the buyer cannot close escrow on time, that unfortunate situation can cause all sorts of problems. The main problem is related to the fact that purchase contracts contain an acceptance date coupled with a closing date. If the closing date is missed, at a minimum the contract is in jeopardy, at maximum the contract has expired. A home inspection and pest inspection are paid well before closing and are usually non-refundable. There are different times during the closing process that would be more appropriate to back out of a home purchase. Before you make an offer on a house, make sure the seller and/or the lender are willing to make any repairs or nonnegotiable changes.