Background: I own a home (California) built in 2022. I decided to upgrade (sell mine, purchase a replacement). I found a realtor and I agreed he could represent a buyer if the buyer was unrepresented during the transaction. Realtor found an unrepresented buyer. Buyer was ‘highly’ interested and submitted an offer, which I accepted. MY realtor is representing the buyer as well. We both signed a contract. The contract had 10-day contingencies (loan approval, appraisal, and investigation of property). I placed a contingent offer on a replacement home which was accepted. Buyer was approved by lender, home appraised at purchase price, and inspection revealed nothing was wrong with the home. Buyer submitted a ‘request for repairs’ and asked for HVAC filters to be replaced. I agreed. Before contingencies were removed, realtor notified me the buyer wanted to cancel because she found another home with a bigger yard in the same neighborhood. Buyer submitted a ‘cancellation of contract’ asking for a proposed mutual cancellation and for her to get her deposit back. Realtor is PUSHING for me to sign the cancellation of contract so we both can move on. Realtor told me buyers can ‘cancel for no reason’ before contingencies are removed. I told realtor this sounds wrong, as I did everything outlined in the contract and she wants to cancel simply because she wants to put an offer on another home, not because I failed to perform. I declined to sign the ‘proposed mutual cancellation’ as I had no intention of cancelling the contract. Sellers of the replacement home are likely going to get their home back on the market as they do not want to keep waiting for me. I AT LEAST believe I am entitled to the buyer’s deposit as all contingencies were met and she essentially wasted my time and I have to re-list my home. I’m meeting with an attorney next week to see if the buyer can actually ‘cancel for no reason’. What do you guys think?
It sounds like you have a solid case. If the buyer is backing out just because she found something else, that seems unfair. You might have grounds to keep the deposit.
I’d definitely consult with your attorney. In California, buyers usually can cancel for trivial reasons, but it doesn’t seem fair considering you met all obligations.
Make sure your attorney reviews the terms of your contract closely. If everything was met on your end, you might be able to argue for your rights.
I think it’s pretty standard for buyers to back out if they find something better, but it doesn’t mean you shouldn’t fight for your interests.
Good luck with the attorney. It sounds like this buyer is just being opportunistic. Hopefully, you get the clarity you need.