How to Sue for Damages if a Seller Backs Out of a Contract

If a seller backs out of a real estate contract, you do have some legal options.

Difficulty:

Challenging

Instructions

Things You'll Need

• Real Estate Attorney Referral Services

1. Review the contract for clauses that state that disputes must be handled in small claims court or through arbitration or mediation.

2. Realize that you may be able to sue the seller for "specific performance," which forces the sale of the home to you.

3. Consider suing for monetary and punitive damages if you can prove fraud or deceit by a seller who backs out of a contract.

4. Hire a local real estate attorney to review the contract and advise you on the legal options available to you in your state.

Tips & Warnings

• You may be able to sue for breach of contract if a seller backs out of a real estate sales contract for a reason that's not covered in the contract.

• Always consult a knowledgeable real estate attorney if you have questions about clauses in real estate contracts.

• Don't assume that the sales contract has been breached if the seller backs out of the deal; consult a knowledgeable real estate attorney for advice.