What Happens If A Seller Refuses To Close On A Property?

Posted November 28, 2025 in Uncategorized

We often hear of buyer’s remorse, but what if the seller changes their mind? If you’ve agreed on a price for real estate and are ready to sign the final documents, what can you do if the seller refuses to close?

In Colorado, once an offer is accepted and a deposit paid, it becomes a binding contract. If the purchase and sale agreement is finalized and signed by both parties, it is also binding. In both cases, everyone must fulfill their obligations or face potential legal action for breach of contract. If you’ve made an offer but the seller now hesitates, you need a skilled Colorado real estate litigation lawyer. Your options depend on the stage that the transaction is in, what’s been signed, and whether a deposit or earnest money has been paid. To purchase the property, you may need to petition the court to force a sale.

Your Legal Options When a Seller Refuses to Close

If an offer is accepted, a deposit is placed, and the purchase agreement negotiated, a buyer who backs out is responsible for damages and will likely forfeit their deposit. The buyer could face civil action by the seller, whose damages may be more than the deposit covers (such as missing out on selling the property to someone who would fulfill the purchase agreement).

The seller hasn’t put any money down, and so wouldn’t have a deposit to forfeit. What happens if the seller receives a much better offer in between the time they initially accepted the offer and closing time? This is usually the reason a seller backs out of a deal.

If the seller has a legally binding contract under Colorado law, they must complete its terms of selling the property to the buyer. The buyer can seek specific performance if the seller refuses. This legal remedy allows a court to force the sale per the contract.

Awarding monetary damages is the usual remedy for a breach of contract. You may be entitled to compensation for your out-of-pocket losses, such as a deposit or earnest money, as well as future damages, or the financial impact of the seller backing out. However, arriving at a fair amount for monetary damages can be tricky, as since no two properties are identical, any amount of money damages may not be sufficient, since the buyer cannot purchase an identical property to the one that the seller refuses to part with. Usually, the only way the court can make the buyer whole after a seller defaults is to force the sale of the property.

How to Force a Sale of Property When the Seller Backs Out

As a buyer, you need a court order to be made whole. The first step is for you and your Colorado real estate litigation lawyer to file a civil lawsuit. As the plaintiff, you must show actual loss. Working with an experienced attorney at Volpe Law LLC gives you the best chance of success. Call us today for a complimentary discovery call.