Question by TB1836: What happens if a buyer terminates a real estate contract the day of the closing?
If a buyer is under contract to buy a REO property and decided the day of closing they want to terminate, other than losing their earnest money, what is the worst that can happen? Can they be sued for specific performance? In this case, they have decided at the very last minute they want to purchase another property that has recently become available.
Answer by debberu
IF there is not valid reason to terminate the contract other than “changing their mind”; then yes, they can sue for performance. Many times, however, w/ the amt of REOs the mgmt co may just make some threats and just relist the property and you would only be out of earnest money.
Not guaranteed but seen it happen..
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