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Know Your Options When Buyers Back Out

Question: We recently agreed to sell our home, and now the buyers are trying to back out due to the wife's illness. The wife was ill when they made the offer. We have done everything they have asked. We brought out two contractors to assure them there was no problem with the house. They had an inspection, and the inspector found a problem with the chimney. They told us what they would like fixed, and we agreed to fix it at our expense. Now they claim that her doctor thinks she probably shouldn't move, so they want out of the agreement. As far as I can tell, there is nothing in our purchase agreement that says anything about illness. What are our options? We likely will let them back out of the contract.

-- Trisha, Ohio

Trisha: You'll have to reread the fine print on your contract to see whether there are any provisions allowing the buyers to walk away in certain circumstances. If not, they would be bound by the contract, says Robert M. Curry, an attorney in Dayton, Ohio, who is a member of the American College of Real Estate Lawyers.

Whether it would be worth going to court is another matter. For one thing, you would have to show that you suffered damages. That might be difficult to do if you later manage to sell the home for a similar price. You also would have to consider whether the defendants in any suit would be able to pay any damages that the court might award.

Because you say that you decided to let the buyers off the hook, Mr. Curry suggests that you go ahead and try to sell the property to another party, then determine what, if any, substantial damages you have suffered and whether it's worth your while to file a suit.




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