Legal Question in Real Estate Law in California

Re: Sellers right to cancel

The agreement may specify a cancellation time, or conditions such as you getting financing. Even if not, have a lawyer review your agreements write a letter canceling to avoid getting into worse trouble. Let me know if you want help.

Best,

Daniel Bakondi, Esq.

IMPORTANT:

No attorney-client nor confidential relationship is created through this communication. You may not rely in any way on this communication, and nothing herein constitutes legal advice nor legal opinion. Your issue may be time sensitive and may result in loss of rights if you do not obtain an attorney immediately.

Re: Sellers right to cancel

You will need to look through the contract and see if there is a provision for you obtaining financing as a condition precedent to the sale.

I would need to read the purchase agreement to tell you any more than that.

Hopefully, you have a good agent who remembered to include that clause.

If you need further assistance or want a fresh pair of eyes to review your agreements, please feel free to contact me at the email provided by LawGuru or through our firm's site PasadenaEstatePlanning.com.

Re: Sellers right to cancel

I answered the earlier version of the same question. After seeing this version with a little more data and reading the other lawyers' responses, I'm pretty much sticking with my earlier response, but I'll add two thoughts:

(1) If there is going to be any kind of cooling-off or cancellation right, it may have a very short time limit, so you should probably re-ready your contract IMMEDIATELY upon getting the responses via LawGuru, and also call your agent or broker. You may have to notify the buyer by a certain day and hour in order to exercise a cancellation right.

(2) If you are married and the house has a community-property interest, and your spouse has not also signed, this MIGHT be an "out" for you, but a lawyer would have to verify this for you after reviewing the documents and the negotiations. I do however know of at least one case where this worked for a seller that got a better offer after the contract but before the closing.

Re: Sellers right to cancel

I answered the earlier version of the same question. After seeing this version with a little more data and reading the other lawyers' responses, I'm pretty much sticking with my earlier response, but I'll add two thoughts:

(1) If there is going to be any kind of cooling-off or cancellation right, it may have a very short time limit, so you should probably re-ready your contract IMMEDIATELY upon getting the responses via LawGuru, and also call your agent or broker. You may have to notify the buyer by a certain day and hour in order to exercise a cancellation right.

(2) If you are married and the house has a community-property interest, and your spouse has not also signed, this MIGHT be an "out" for you, but a lawyer would have to verify this for you after reviewing the documents and the negotiations. I do however know of at least one case where this worked for a seller that got a better offer after the contract but before the closing.

Re: Sellers right to cancel

The terms of your agreement define that, and answer your question. You should assume you are bound to the contract to sell unless you put in a contingency provision, or have some other provision that applies. Review it, with counsel if need be. You can unilaterally cancel and breach the agreement, but would risk getting sued. Have your broker contact them to see if they will agree to cancel without major penalty to you. Negotiate. If you need legal help, feel free to contact me. You might.