How can a seller get out of a real estate contract? But that’s the question you have, and I’m about to answer right here.
Can the seller back out of the contract? Once they’ve signed with you? The answer plainly says, yes, they can back out of the contract. If you don’t enforce it, you can take them to court and say, Hey, I have the right to buy this house, you’re not going to sell it. But is that worth your time, of course, you can take anyone for court for anything, you can sue anybody for anything in this world, it’s crazy what you can do. So if a seller tries to back out, of course, they can do that, just because you know, they can do whatever they want, they can stop to answering your phone calls, they could stop responding to you, they could not answer the door if you knock.
But there are a couple things that you can do to stop them from doing that. You can file an affidavit, a memorandum or a notice of interest and say, Hey, I’m going to cloud title because I’ve spent all this time and energy by your house and you can’t back out now are they supposed to back out as well, they’re not supposed to back out. But a lot of people aren’t supposed to do a lot of things they do.
So anyway, I just want to let you know plainly that yes, they can back out in the sense of like, you can’t make them do anything unless you take them to court. But there’s really nothing, you’re not going to want to do that it’s going to be a waste of time, energy in money, a lot of money because, you know, going to court is expensive. But there are things you can do. And you can tell the seller straight up like hey, look, you know, it’s okay if you don’t want to sell, but I have the rights to purchase your property. So if you want to sell later, I’m going to be there I have we have the contract we signed, so I’ll be there to buy it.
And that’s actually exactly what happened with a seller that I worked with, they wanted to sell so bad. And then all of a sudden, the day of closing they told me Oh, I don’t want to sell anymore. And I know why because you know, obviously, I’m not the only one that has been calling trying to negotiate. And sometimes sellers try to get out of your contract to get in with someone else. So I actually have a video of me talking to the seller, you can hear him trying to back out and my response and how I handled it. Before we go into that video, I want to invite you all to my free masterclass I do every Thursday.
So I can show you exactly how to navigate your first deal as a wholesaler, or how to do a deal the payneless way, go to paynelessflipping.com link in the bio, and you can learn exactly how to work with sellers. Even if they try to back out on let’s dive into this video that I made. So you can see how I handled the situation. If the 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 from an attorney that says 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 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 of 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 want to say more. 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 all right. You told me that you did and you needed to. But if you’ve changed your mind or something 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 going to 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. 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 right and I got some crazy stories to tell you about how this works. All right. So guys, let me tell you about some crazy stories I got I got a couple All 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 him to sign it. I signed we both agreed at the time. So there’s a couple experiences I’m gonna 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 to me and he had one in Denison Alabama den 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 when 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 our 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’m in this video is not even about title insurance. But who even knows if it works, okay, all the experiences I’ve heard had it, 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 bought it notice 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 times where I didn’t have to file 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. And he just kind of made a bunch of excuses. So it’s like, Oh, gotcha, listen, we’re gonna file a notice. If you don’t want to sell, it’s fine. But if you do, we’re ready to go in, 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.
o 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 protect your interest to buy properties. You’re spending a lot of time and energy to do this. Don’t lose out just because someone wants to gets cold feet or they just want to go someone’s going to 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 Mindmap 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.
