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  1. #1
    Join Date
    Sep 2016
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    13,916

    Default Can a Seller Cancel a Real Estate Sale Before the Buyer Returns Final Paperwork

    A home buyer participated in an online auction for real estate. This is an auction house associated with a major mortgage servicer that sells REO properties by auction. After the auction the buyer received paperwork to sign and return. The buyer asked when the paperwork was due, and was given a date. The day before the deadline, the auction house contacted the buyer and told him that the sale had been canceled.

    Even without signing the documents, the buyer was contractually obligated to buy the property by virtue of being the winner at auction. How can the seller have the right to back out?

  2. #2
    Join Date
    Sep 2005
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    Behind a Desk
    Posts
    98,846

    Default Re: Can a Seller Cancel a Real Estate Sale Before the Buyer Returns Final Paperwork

    My guess is that if you read the terms of the contract, the seller has the right to back out at any time before the return of the signed paperwork, and perhaps even up to the date the paperwork is due. It may not be fair for the buyer to be bound to the contract when the seller is not yet bound, but if those are the terms of the sale then the buyer accepts that possibility when participating in the auction.

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