Can a seller cancel or revise a real estate contract after it was sign by both parties, and the inspection and appraisal have completed?
Question Details:
We are schedule to close in a couple of week and the seller know their house appraise above the sale price.
If you think the seller will try to back out, you need to contract a lawyer. It would be a breach of contract but you need to plan how you will handle matters with the assistance of counsel.
Like any other contract, a real estate contract may only be revised or cancelled if--
1) Both parties agree to the modification or cancellation.
2) There is some clause in the contract itself allowing its modification or cancellation under certain circumstances--for example, the "finance contingency" (a/k/a "mortgage contingency") which can let a buyer cancel without penalty if he/she cannot obtain financing.
3) If one party violates a material (or important) provision of the contract, the other party may then be entitled to terminate the contract without penalty--for example, if the seller cannot or will not close on the closing date, the buyer could walk away.
