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What Happens If One Party Backs Out of a Real Estate Transaction in Illinois?

What Happens If One Party Backs Out of a Real Estate Transaction in Illinois?

Real estate transactions can be full of stress and uncertainty. After many ups and downs, buyers and sellers should theoretically have more peace of mind once the contract has been signed and the funds have been deposited in escrow. However, there are occasionally scenarios when one party backs out after this point, causing not only additional stress but also measurable losses.

Whether the party seeking to cancel the transaction is the buyer or the seller, they can face considerable consequences. Working with a seasoned Illinois real estate attorney can help you understand your rights, explore your options, and fight for a favorable outcome on your behalf.

When a Buyer Backs Out

A buyer may back out of a real estate transaction for various reasons, such as unexpected changes in their financial situation, issues with securing financing, unsatisfactory home inspection results, or simply getting cold feet.

When a buyer backs out of a transaction, the seller may be entitled to keep the earnest money deposit as compensation for their losses. If contingencies in the contract do not cover the buyer’s reasons for backing out, the seller may also have the right to sue for specific performance, forcing the buyer to complete the purchase, or for damages.

When a Seller Backs Out

A seller might back out of a transaction if another buyer makes a higher offer, they encounter unexpected issues with their next home purchase, or they have a change in their personal circumstances that makes selling undesirable.

If a seller backs out of a transaction without a valid reason as outlined in the contract, the buyer can sue for specific performance to force the sale to go through. The buyer may also be entitled to monetary damages to compensate for their losses, such as temporary housing costs, storage fees, or lost opportunities.

How an Experienced Real Estate Attorney Can Help

Working with an experienced real estate lawyer can provide valuable assistance when one party backs out of a transaction. They can review the contract to determine the rights and obligations of each party, negotiate with the other side to reach a resolution, and represent their client’s interests in court if necessary. An attorney can also help their client understand the potential consequences of backing out and explore alternative solutions to minimize losses and move forward.

 

Contact the Law Office of Vogel and Mourelatos, LLC, Today

 

While an unexpected termination of a real estate transaction can be the cause of anxiety or even panic, it’s important to remember that you have options. An experienced Illinois real estate attorney from the Law Office of Vogel and Mourelatos, LLC, can give you the support and advocacy you need at this challenging time. With more than 30 years of combined legal experience, our team has the skills, knowledge, and resources to fight for your rights. Call us today or contact us online for a confidential consultation to learn more about how we can help you.

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