I have 2 sellers that have decided not to sell because they can’t find a house to buy that meets their needs. Inspections are set for today.

The best advice to give a seller who wants to back out of a contract to sell their property is to advise them to contact an attorney to get legal advice. Realtors cannot give legal advice. You can reach out to the buyer's agent and let that agent know of the seller's inability to locate a home to buy. Maybe with the buyer's agent's help the parties can renegotiate the closing date to give the sellers more time. But, the buyer's agent will most likely direct you to the closest apartment complex. This is a tough situation. But, if the seller's want to terminate they will need to consult with an attorney.

Advise they speak to an attorney so they can weigh the consequences of not performing under an effective contract. If buyers want to re negotiate after inspections, sellers would have the opportunity to refuse any request in hopes buyers will walk away. The only other real option would be to reach an agreement mutually with buyers for a sellers lease back, extended closing or, simply find a short term rental, even an extended stay type residence that could be weekly or monthly rates.

Find them a place to rent near where they want to live until they find a house that suits them.

Angel and Cagdas' comments are great. I'm sure following one of those options, everything will work out for both sellers. I would highly encourage your sellers to consult an attorney and get their advice though. If they do not, I would have it in an email that you have recommended that and that they refused and keep that email for CYA. Good luck!

Call ALICE: 281-923-7213. I am a broker. The answer is clear.

If your sellers have a signed contract with a buyer and the sellers don't want to tell, I would advise them to very quickly find and retain a good attorney familiar with real estate lawsuits. It's difficult to force a buyer to buy but it's much easier to force a seller to sell.

Carla,

The contracts we use require the seller to perform. Through the option period, the only party with the unrestricted right to terminate is the buyer. After the option period, neither party has the right to terminate. Although, there are contingencies in place that could allow the buyer to terminate if for example, financing is not obtained. It would have been possible to write in a contingency for the seller such as "seller has the right to terminate if the seller is unable to find a home and enter contract to purchase by X date." This is just an example, and is not language that an agent can legally add to a contract. As a REALTOR is not permitted to practice law, any contingency language for the seller would need to be drafted by a licensed attorney.

Let's assume a contingency was not included in the contract for the seller, as that is how the promulgated forms we use are structured. Your options are to request for a closing date extension from the buyer to allow the seller more time to find a home, or to request a seller lease back from the buyer. I feel the seller lease back is the more realistic option. A party to the transaction can lease the home from the other party for up to 90 days after the date of closing using the Temporary Residential Lease forms promulgated by TREC. A buyer will likely want rent from the seller in this scenario, and often the requested rent is a prorated rate of the buyer's PITI. I hope this helps!

Considering there will be more houses available sooner and you might find a home for your clients with in next 3-4 months. You might delay the closing time, or ask for your clients pay lease to the buyers for the time till they get to the new house or as much as buyers accept.

Good luck.
Regards,
Cagdas Acar
acarster@gmail.com
www.cagdasacar.kw.com
832-283-1091