What if a seller has already entered into a valid Purchase Agreement with a buyer? Can the seller get out?
If the parties are using the Minnesota REALTORS® Purchase Agreement, and the Purchase Agreement has been executed and delivered, it is binding upon both parties. It may only be canceled according to the terms and procedures outlined in the Purchase Agreement and contingencies therein. The Minnesota REALTORS® Purchase Agreement requires the cancellation, or any alteration, to be done in writing signed by both parties and does not allow for unilateral cancellation by the seller upon receipt of a better offer. However, if there are other contingencies, the agreement may ultimately be canceled based on one of them, and the seller would have the opportunity to sell to the new buyer. For instance, if there is a Minnesota REALTORS® Addendum to Purchase Agreement: Inspection Contingency, the seller may choose not to negotiate or make repairs for the purchaser, which may drive the purchaser to elect to cancel or waive the contingency. (Note: Keep in mind that if a purchaser cancels based on an issue related to the inspection, if the seller becomes aware of the issue, it may be a material fact that would need to be disclosed pursuant to MN Statute 513.55 and MN Statute 82.68.)