I am under contract for a condo but have decided I no longer want to buy it. My realtor mentioned that the seller could sue me if I backed out. Is this a real risk, or is my realtor just trying to ensure he gets his commission? I understand I will lose my earnest money, which I am fine with.
Whatever can happen differs based on the state and the contract provisions. You’re talking about potentially breaking a legally binding agreement. In my opinion, you should see an attorney. Your agent is not a professional attorney and cannot provide you with legal advice. I’m not an attorney or your agent, but you could be looking at the seller suing for specific performance, and you could be accountable for any losses incurred if they are unable to sell for the amount specified in the contract, including lost commission. Yes, there are laws and precedents for all of this in different cases around the United States. We don’t know where you are or what you signed, therefore this advise should come from your attorney.
Although it is extremely uncommon, you COULD be sued if the contingency does not cover you or did not have one.
For what reason are you retreating?