ABA Family Legal Guide

Buying and Selling a Home

The Steps of Buying and Selling a Home

Making an Offer: The Purchase Contract

Can a buyer sue a seller for backing out of the contract?

Depending on the terms of the contract, it is possible that if the seller violates the terms of the contract or refuses to close the sale, the buyer can sue to force the seller to complete the transaction, or recover the earnest money and cancel the contract. It is also possible for the buyer to sue for damages. For example, a buyer who had incurred costs in obtaining a mortgage or costs for renting temporary housing because the closing did not occur would have a case for damages.