What happens if a seller backs out of a real estate contract?
I understand they buyer usually has 10 days for inspections and repairs where he can technically back out. After that, all the buyer loses is earnest money. What about the seller? TS?
Nothing happens if the buyer does not sue you for time lost and expenses. You can back out anytime, buyer gets earnest money back.
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The seller usually has different reasons that they can back out of a contract, such as the buyer failed to get them a financing letter or missed the closing date - contingencies like that; but its alot harder (usually they have fewer contingencies) and sometimes they may want to get out and not have a valid reason (not be able to point to a contingency that was not met).
Worst case if a seller flat out refuses to close the deal without a valid reason why, the buyer will probably demand money for their time and effort or for any amount they wanted to up to the contract price really (or maybe not even that, maybe they’ll just give up and go away). The buyer could also sue the seller for “specific performance” (as could the seller sue the buyer if they backed out without a valid reason) which means suing the other party to go thru with a contract they signed. Generally, however, its enough just to pay the other party some amount to make them go away.