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When buyers cancel their real estate deals sellers may sue for breach of contract and monetary damages Specific performance may also be a legal remedy for a property seller if a buyer backs out of the deal.

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Whether it be personal matters or a sudden change in their financial situation, most sellers are cooperative and may even be willing to graciously let a buyer default without financial consequence.

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The main type of equitable remedy applicable in a real estate contract context is specific performance.

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In fact, this is how contingencies often play out.

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Generally both the seller and buyer have a certain timeframe to back out of a deal before it proceeds to.

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During these three days, the buyer or seller can back out of the contract for any reason.

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Such a clause would need to have been specifically written into the purchase contract to be applicable, which is unlikely, he said.

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On closing to close escrow.

At the purchased a buyer breaches the due diligence.

If arbitration is agreed upon by the parties, the decision of the arbitrator will be binding on both parties.

Having graduated from law school I can tell you there are certainly limits to what an attorney can write in an enforceable contract with respect to earnest money.

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Further, the Buyer may also be entitled to other costs they incurred relating to their Due Diligence efforts such as inspections, surveys, title research fees, and loan expenses.

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