Seller's Rights vs Buyer's Rights

I recently have had a couple of Sellers try to terminate a Contract of Sale against the Buyers wishes. This does not occur often but when it does it brings up an often overlooked aspect of the real estate contract and selling process. When a Seller sings a Contract of Sale they are giving up more rights than the Buyer is when you look at it logically.

If the Seller breaches a Contract of Sale the courts have proven, time and again, that they are willing to force the Seller to deliver the property to the Buyer according to the terms of the Contract of Sale, and to force the Seller to cover the Buyer's legal expenses incurred in enforcing the Contract through the courts.

Conversly, when the Buyer defaults the Seller is usually left with little or know option other than to claim the Earnest money that is in escrow. The primary reasons for the Buyer defaulting usually relate to a lack of creditworthiness and the problem with Buyer default is that even if the courts agree with the Seller the Buyer may be fiscally unable to comply with their contractual committment. The Seller, however, when in default, can be forced to deliver title to the Buyer.

Why would a Seller want to terminate? Most frequently it is because a better offer comes along after they have signed a Contract of Sale. Other reasons can include dramatically changed personal situations such as an employer who changes their mind about a transfer, etc. Regardless of the reason for the Seller wanting to default the Buyer is in the driver's seat and the Seller must realize that if the Buyer wants to force the issue the Seller will be at a legal disadvantage.

Moral of the story? Be very certain that you want to sell before you sign a contract. As the Seller you are giving up your right to retain the property if the Buyer proceeds to closing, willing and able to purchase, and you default. Your consequences can be very severe if you default.

Your comments would be very welcome.