Welcome back to the channel, everybody. It’s so good to see you here. Thanks for coming in support me and I got a great video for you today.
Do you want to know if a seller can back out of your contract? I get that question all the time. So today we’re going to talk about can a seller once they’ve signed a contract with you, can they back out?
By the end of this video, you’re going to know exactly if a seller can back out of a contract, you’re going to know why a seller would want to back out of a contract, what the heck do you do if they try it. And I’m going to tell you about some experiences that I’ve personally had. So you can relate it to what you’re going through if this has happened to you.
Alright, guys, let’s just start go dive right deep, I’m not going to give you any fluff, I’m just going to tell it to you straight, a seller can back out of a contract, okay? They can do whatever the heck they want. Now, if the seller signs something with you, they have full rights to never, I mean, they can move to Canada, they can move to Mexico, you could never see them again, you can’t make someone sign a contract. I mean, you can’t physically drag them to the title company. Now, yes, legally, they’re obligated, but what are you going to do about it? So if a seller ends up signing a piece of paper, whether it’s DocuSign, or signing it saying they’re gonna sell you their house? Yes, of course, they’ve entered into a legally obligating document and binding agreement. But if you never can get a hold them again, what are you going to do about it? If they ghost you, if you call them they stop answering your calls, if you text them, they don’t they don’t text you back? If you even go to their house and knock on their door, and they don’t answer you. There’s not much you can do. So someone backing out of a contract? Yes, it happens all the time. And the thing is, like, you can’t force anybody to go to the title, company and sign. The the purpose of an agreement is so you can both agree. And then you can enforce it if you want. Now, you can sue somebody you can, like, you know, try to get them enforce the right to your right to buy their house, but I meant is the judge going to let you take over that person’s house. I mean, I’ve never even had to get to that point where I’m saying, Hey, I’m gonna buy your house, I’m gonna sue you. So you sell it to me. It’s, you know, I think judges just be like, now you can’t do that. But again, I’ve never had that experience. But there are a couple of different ways that you can protect your right to buy a property. And if a seller tries to do this, but again, you cannot force anyone to sell you their house, even after they sign there’s not much you can do. You can try. Like I said, you can try taking them to court, but that’s going to be very expensive. And do you really want to force someone to sell their house to you if they don’t want to?
So why the heck would a seller try and cancel anyway? I mean, if they if you agreed on a price, if you agreed to buy their house? Why would they end up ghosting you canceling saying, Oh, I don’t want to sell anymore. Guys, there’s a lot of reasons why seller would probably want to not go through with it. And something that happens a lot in our industry as wholesalers real estate investors, it’s usually because they had a better offer. So when you get that objection, which I get a lot, and actually not a lot, because I’m pretty transparent. And sellers just tell me what’s going on. When that happens. You just got to call it for what it is. So if a seller says if you talk to a seller that’s really motivated to sell their home, and they’re like, hey, I need you to close in 714 30 days or whatever. And all of a sudden, like a week or two before you close, they say, I’ve actually decided not to sell my house, I want to stay in it. You can just kind of feel smell or feel like that smells fishy or smell something funny. You can say, that’s interesting. So you’re really needed to sell because you’re low on funds or whatever. But now you don’t need to sell anymore. So that’s one of the reasons is they got a better offer.
Number two is maybe they just don’t want to move. Okay. And that’s totally fine. If if you agree to buy someone’s house and they don’t want to move anymore. That’s fine. I’m going to tell you exactly how to handle that objection. Because I get that a lot. When people say, Oh, I don’t want to sell anymore. I’m backing out of the contract. And I say, Oh, is it because you got a better offer? And they say no. And I’m like, Well, are you you just don’t want to move? And they’re like, No, I’m just gonna stay here. So again, if a seller doesn’t want to sell their house, and they try to back out, it’s because they don’t want to move. There. They had a better offer. But most of the time, it’s because they had a better offer. And they’re just trying to get out and go somewhere else. And I’ve had this experience happened to me a lot. And I’m going to tell you exactly how to overcome it.
But before I tell you about that story, let me invite you, let me ask you, I’m not going to plead with you. But I’m just going to say hey, help me out. Please subscribe, like and subscribe and hit the bell icon because guys, it’s going to help me out a lot. It’s going to help me grow my channel. I gotta get this information from in front of more people. And if you do all that it’s going to help the algorithm put this in front of more people and help me out so please do those things and I’d really appreciate it.
If a seller is tries to back out on you like I was telling you this is exactly what you got to do. When you sign a contract with someone in my contract that I have and by the way I give out my contract. In the contract I have I’ve specific performing language that I’ve been given for I’m an attorney that says that they if they try to back out, you have the rights to file an affidavit of memorandum and notice of interest, there’s a bunch of different names on it. But basically, what it does is, you’re just saying, Hey, I’m going to enforce my right to purchase this property, I have spent a lot of time energy and money. So if you’re going to sell the house, you’re going to sell to me, because we entered into this agreement, and you can file this paperwork to enforce your right and you can’t again, you can’t force them, but you can put a notice of interest on the property. It’s like a lien and, or a notice. And you can say, hey, that’s fine if you don’t want to sell it right now. But if you do sell it, this is going to come up when a title company does a title search. And that’s exactly what you got to do is just understand, you can’t force anyone to do anything. But you can file a notice of interest to protect your rights to that property. And that’s what we do on deals where sellers get fishy. And guys again, like if they don’t want to sell right now, that’s completely fine. You don’t have to sell, but you did agree to sell me your house. So when you do, I’m gonna be there ready for you? Because that’s what we agreed on. And that’s honestly how you handle these things. A lot of sellers This is and I’ll tell you a couple stories, which are pretty funny. But a lot of sellers will say, Hey, I decided not to sell anymore. And you’re like, Are you sure it’s not because of the offer? Maybe we can renegotiate let’s talk about this. They said no, no, no, I just don’t want to sell anymore. You say that’s totally fine. I totally get it. If you don’t want to sell if you don’t want to move, for example, that’s alright, you told me that you did and you needed to. But if you’ve changed your mind, or something’s happened, no problem. But when you do, I’ll be ready for you. Because when you signed that agreement, you gave me the rights to file a notice of interest. So I’m just gonna put, put a notice on the property just so I can, you know, be ready for when you do sell it. And then you get to, you get to kind of feel the energy, if it’s a phone call, or if it’s in person, you kind of tell that if they’re lying, they’re like, Well, hold on I, you know, they start making excuses. You just say well, well, you said you didn’t want to sell, that’s fine. But when you do, I’ll be there with the contract that we agreed on. And we’ll be ready to move forward. So that is how you enforce your rights.
And I got some crazy stories to tell you about how this worked. Alright, so guys, let me tell you about some crazy stories I got I got a couple right. And I’m not here to force anyone to sell me their house. Okay, we entered into a legally binding agreement. They they signed, I didn’t force them to sign it. I signed we both agreed at a time. So there’s a couple of experiences. I’m going to tell you one. So I was dealing with this guy in Atlanta, Georgia, he had a property in Atlanta that he said he was going to sell them and he had one in, Denison, Alabama, then now Ma’am, I can’t remember. And he signed an agreement before I get anyone to sign and say, Hey, are you you’re good to go. I just want to verify that, you know, if you sign this, and I sign this, like, we’re ready to go. He said, I’m good. I’m good. So we sign it. Everything’s good. I set up a walkthrough. I have one of my buyers go there and we’re ready to buy it. We put down our earnest money at the title company, we’re ready to purchase it. I sign it to him for like $15,000. And then when I call the seller, he stops answering. He’s not answering anymore. So that’s fishy. He was always answering and we’re calling him getting the deal ready. So what ended up happening is we fought when we found out that he wasn’t answering the phone calls. I was like, This guy’s probably trying to go around us he already agreed to sell us the home. But you know, maybe he’s getting fishy, right? And I was calling him and I’m a reasonable guy said hey, man, I you know, I haven’t heard from you. Are you trying to sell this to someone else? Because you know, we filed we can we file the notice of interest. Like we have the right to buy the property. I mean, obviously you signed the agreement, and just nothing he wasn’t saying anything to us. So I was like okay, whatever. So we we went filed the notice of interest. If you guys don’t know how to do that, I have another video on how to actually file a notice of interest and get it notarized. But anyway, so we did that we put it the title company, everything the county, we got to notarize. And what ended up happening was he had sold it to someone else and they had purchased it after we got you know, we filed their notice. So this one’s a sticky situation. Usually title companies will catch that. And they’ll be liable because they’re like title insurance, but title companies, they always try to get out of having to pay, you know, anything. I mean, they have so many clauses. So title insurance, I mean, this video is not even about title insurance, but it Who even knows if it works, okay, all the experiences I’ve heard had, its they tried to get out of everything. So what ended up happening is someone else purchased it while we had a notice on the property. So now we’re in disputes with the buyer, and it’s a sticky situation, but you know, we’re still sticking in it. We still are talking to them. And you know, I don’t know what’s going to happen. But that is a situation where I shouldn’t have started with that one because that one didn’t work. But there are other situations where it has worked. So let me tell you about this one. So I bought a property or I was planning on buying a property in Cheyenne, Wyoming All right, and I’ve never been there but we’re we were trying to buy it. We signed the agreement. The guy goat ends up ghosting us so we filed the notice of interest and someone you know actually what ended up happening is the guy Audit noticed that after he bought it, there was a notice on it and he needed to resell it. So he reached out to me and I was like, Hey, man, like we had the rights to buy it. So what we’re able to do is we’re able to negotiate a fee for him to release the notice. And that’s, that’s a way that at least we were able to recoup a little bit of our time and energy and money by, you know, the buyer saying, Hey, okay, I’ll pay you just to get rid of it.
This is one of the the times where I didn’t have to file a notice. But I did, I was able to use the not the threat, but just the letting them know that I would do it. So they would not try to back out of the agreement. So this guy was really interesting. I spent like several days, hours and time with him to get the exact offer that he wanted. We agreed on the price of like, 1105, or something like that. This was a house in Florida. The guy agreed exactly to the terms he was ready to go. Two days before closing. He says, I’ve decided I want to sell. And I say two days before closing you were really excited to sell you don’t want to sell. Is it the price? Oh, no, no, it’s not the price. Sounds a little fishy to me, in my mind. I said, Okay, well, look, I can’t make you sell it. But what I can do, because you signed a legally binding agreement is I can file a notice of interest on the property. And when you are ready to sell, I can buy the I’ll be ready to buy the property because I’m ready to go right now. We were actually ready to go in two days. And he’s like, Oh, no, no, no, you can’t do that. And I said, Well, why does it matter? You’re not moving? It’s okay. And he said, Well, no, I and he just kind of made a bunch of excuses. So it’s like, gotcha, listen, that’s we’re gonna follow notice, if you don’t want to sell, it’s fine. But if you do, we’re ready to go. He’s like, he hung up because he was upset and he’s like, I will not going to sell it to you guys, even though he agreed to it. So a day two days later on the day of actual closing, he just went through with it. And the reason why is because someone else probably offered him a couple $1,000 more and he was wanting to get it. But he didn’t understand the time, energy, money, everything that we put into that. So again, guys, when sellers try to back out of the contracts, it’s most likely because they have a better offer. It’s not because they don’t want to move because if they don’t want to move, that’s fine. Just say hey, I’ll be ready for you file and file the notice. So that’s what you do. That’s how you handle these things. And ranking protect your protect your interest to buy properties you’re spending a lot of time energy do this. Don’t lose out just because someone wants to gets cold feet or they just want to go someone’s gonna offer him like $500 more. Talk to him about it.
I got a great gift for you guys before we wrap up. If you want to know how to file a notice of interest, go ahead to my mind map my Payneless Wholesaling mind map and the link below. I give you a free copy of it guys. I’m not a CPA, I’m not an attorney. This isn’t legal advice. But if you need a copy to protect your interest to buy properties, check it out. I got it for you right there.
