Once both sides have signed, a seller can cancel only for a reason the contract or state law allows: an attorney review period, a contingency written in for the seller, or a buyer who misses a deadline. A seller who simply changes their mind or gets a better offer is in breach, and you can demand your money back with your costs or ask a court to force the sale.
Before the contract is signed
A seller can walk away from a verbal agreement, or change their mind after you’ve made an offer but before they’ve signed and delivered the acceptance. Real estate contracts must be in writing. Until they are, there’s no deal.
When a seller can legally cancel
- Attorney review. In states such as New Jersey and Illinois, either side’s attorney can cancel within a few business days of signing.
- A seller’s contingency. Some contracts depend on the seller finding a new home, a lender approving a short sale, or a court approving an estate sale.
- A kick-out clause. If your offer depends on selling your home, the seller may keep marketing theirs and give you a short time to commit when another offer arrives.
- You miss a deadline. A late deposit, a loan approval that doesn’t arrive by the contract date, or a failure to close on time can give the seller the right to cancel, usually after written notice.
- You both agree. A seller can ask to be released, sometimes offering money. You don’t have to say yes.
When a seller can’t
- A higher offer came in.
- They’ve decided not to move.
- They think the price was too low.
- The appraisal came in low and you’re still willing to close.
What you can do if a seller refuses to close
- Get your earnest money back, along with what you spent on the inspection, appraisal and rate lock.
- Sue for specific performance, which asks a court to order the sale. Because every home is unique, courts will grant this in real estate cases.
- File a notice of the lawsuit in the property records, which makes it hard for the seller to sell to anyone else while the case runs.
- Negotiate. Most disputes end in a settlement, because lawsuits are slow and expensive for both sides.
Talk to a real estate attorney quickly. What you can recover depends on your contract and your state.
How to protect your deal
- Pay your deposit on time and keep proof.
- Meet or beat every deadline, and ask for extensions in writing before you need them.
- Stay in close contact with your lender so the loan approval arrives on schedule.
- Keep contingencies tight, so the seller has few openings; see the contingency risk explainer.
- Communicate through your agent or attorney, in writing.
Backup offers cut both ways
A seller with a backup offer in hand has more reason to hold you to every deadline. A backup offer is also your way in if someone else’s deal fails; see backup offers, explained.
For the buyer’s side of the same question, see can you back out of buying a house?
Common questions
Can a seller back out after accepting an offer?
Only in limited cases: during an attorney review period, under a contingency written into the contract, or if the buyer misses a deadline or breaches.
Can a seller accept a higher offer after accepting mine?
Not once a contract is signed by both sides. They can accept a backup offer that takes effect only if yours ends.
What can I do if the seller refuses to close?
You can demand your deposit back with your costs, or sue to force the sale. Most cases end in a negotiated settlement, so talk to a real estate attorney.
Updated October 2026. Educational content. OfferBacked is not currently a lender and doesn’t issue pre-approvals or loans.