A seller of a property may change his mind about selling.  This may result from a number of factors.  For example, the seller may feel that the purchase price offered by a buyer is no longer adequate to suit their financial needs.  Reasons for the listing a home for sale in the first place may become inapplicable, and the seller may decide to stay in the home.  Sometimes, a seller may feel a sentimental attachment to a home and not feel comfortable selling it to a particular buyer.

If a seller changes his mind before a contract is signed on the property, he can simply remove the home´s listing as available.  Note, however, that certain fees may still apply.  For example, if a listing agreement has been signed with a realtor, the seller will still have to follow through on the terms of that agreement, including any applicable fees.  If an attorney has been retained, the seller will likely have to compensate him/her for any attorney fees accrued to the date of the decision not to sell.

More serious problems arise when a contract has been signed.  A contract is a binding legal agreement that obligates parties to follow through with its terms; not doing so can pose serious financial and legal consequences. 

A seller who decides not to sell, for any reason, once a contract has been signed by himself and a buyer should seek advice from an attorney promptly.  A real estate attorney can advise the seller about potential complications, applicable laws, and expenses and ramifications the seller will face from backing out of the contract. 

In many cases, backing out of a contract promise to sell one´s property is impossible.  Real property, or land, is considered to be highly unique, and the law protects purchasers of real property vigilantly.  Frequently, when disputes arise, the court system will require "specific performance"-in other words, the seller must perform the contract to sell a property according to the terms of the contract, regardless of his reasons for changing his mind.

If a buyer does not require specific performance, he may still have legal recourse in the form of compensation for any damages incurred in relying on the seller´s contractual promise to sell.  For example, the seller may be required to pay the buyer any expenses associated with the reliance, including the costs of temporary housing and/or storage that could arise if the buyer is forced to search for another property.

One way for buyers to protect themselves from a situation in which they have no place to live due to a seller´s change of mind is to make the sale of a property from which they are moving contingent upon the seller´s completion of the real estate transaction.  In addition, perhaps the most useful approach to ensuring a seller follow through on his commitment to sell is for both parties to be fully satisfied with the terms of the contract; problems resolved during negotiations prevent far greater problems associated with a seller´s subsequent refusal to sell.

Note:Contact an attorney on all legal questions or legal issues. A real estate agent is not qualified to give legal advice or tax advice and is not licensed to give legal advice or tax advice.

GBrey