Pavon,
The answer is yes the seller can sue you. What you can do is put in your contract that your deposit is considered liquidated damages so that it MAY limit your liability.
You need to have a plan, an exit strategy in mind and that is implementable. Have cash buyers lined up, have access to hard money, etc. It’s really not ‘a plan’ to waste the seller’s sometimes precious time (as in a pending foreclosure).
Second item- you mentioned “That way, Realtors won’t tear my contract apart”. What does a Realtor have to do with any part of this? Does the seller have a listing agreement with a Realtor?
Posted by Pavon Bailey on March 05, 2000 at 10:37:11:
Hello fellow investors!!!
I have a quick question. What happens if you have a house under contract but can’t close because you can’t find a buyer or can’t get a loan? Can the seller sue you for breach of contract or something? I just need to know. A seller is calling me back tomorrow with his decision. I gave him a few offers, but he said he had to talk it over with his wife. I followed LeGrand’s method (write the offers on paper and wait for seller’s acceptance before formalizing it on contract. That way, Realtors won’t tear my contract apart). Thank you, and have a wonderful day!!