Once i sign a contract to sell my home, can the buyer change the price?
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Once i sign a contract to sell my home, can the buyer change the price?
I was recently effected my hurricane Harvey. I contacted Shoreline Properties to see if they were interested in buying my home. They agreed to purchase my home for 65K. Shoreline emailed me a
contract, which I signed and returned it to them. Around the Christmas holidays Shoreline sent over an inspector to take pictures. His pictures were received by Shoreline. I contacted Shoreline to
see if anything else was needed on my end. I submitted documents to the title company and shoreline confirmed receipt of the documents. New Link Destination
day, shoreline sent another inspector out to my home. They called me back and asked if I would consider dropper the purchase price of my home from 65K to 55K, is this legal after a contract has been signed?
Asked on January 24, 2018 under Real Estate Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
A contract is a contract: if somone contracted to by a home for a certain price, that's the price they have to pay unless--
1) The home is damaged after signing the contract and cannot be repaired fully before closing--in that case, they could get out of the contract because you cannot sell the home in the condition they agreed to buy, and can use that as leverage to get you to reduce price or else they will walk away.
2) There is some legal change (e.g. zoning) or government action (condeming part of the property; withholding a certificate of occupancy or something similar you need) which prevents you from closing the sale and selling them the property or rights as agreed; again they could use that to force you take a lower price or they will walk on the deal.
3) Some previously undisclosed hidden or "latent" issue comes to light (like periodic or common basement flooding you failed to disclose)--the nondisclosure could consitute fraud, which could, as per the above provide a basis to walk away from the deal or force a price concession.
4) There is some clause or contingency which allows them to reduce the price under certain circumstances, which circumstances exist or apply.
5) Or the contract contained a clause or contingency allowing them to cancel, which they could use as leverage to get a price reduction.
Otherwise, once they sign the contract, they are obligated to the price in it, and you could sue them, if necessary, for a price reduction.They could still "ask" for you to reduce the price--anyone can *ask* anything they like--but could not force you to lower the price or get out of the sale.
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