Backing Out of a Purchase Agreement

[newinvestor]

My question involves real estate located in the State of: CA

We recently entered into a purchase agreement (e.g. both buyer and seller executed on the same counter offer form) for an income property. One day after the seller had executed the counter offer form, the listing agent notified us that the seller changed her mind and she was taking the property off the market. Is this legal? Can we take legal action to force seller to sell the property according to the original agreement? If so, does it make business sense to pursue legal action? thanks!

[Mr. Knowitall]

I can't read your contract with the seller, and don't know if the seller is simply backing out in violation of the contract or if this is based upon a contingency in the contract. If it's a breach of contract, you have potential remedies in court; if it's not, it's not.

If you can show a breach of contract you can sue for money damages, or you can sue for specific performance (trying to get a court order to force her to sell you the property). Without knowing how much money is at issue or how badly you want the property, I can't tell you if it would make business sense to sue.