im just curious has anyone gone to closing and the seller backed out at closing ?

[oldtrader]

It happens, especially if the owner finds they had sold the home below what they think they can get from someone else. They will just not close, and offer the earnest money deposit back.

The best way to handle this, is to go to the county court house and file the contract as a lis pendens (meaning the owners if given notice a lawsuit will be filed). In most states this ties the property up for one year, before a lawsuit has to be filed. This whole thing can tie the property up for years when a lawsuit is filed the last day of the year period. Then send a registered letter with return receipt to the owners, and the listing office, letting them know the contract has been filed to make the property impossible to sell to anyone as long as this is going on.

Some one pulled this on my son for a small farm located on a tourist highway with buildings he could turn into an Art Gallery, and a Bronze Casting foundry. It had been placed on the market for about 40% under it's value, and he paid full price. Financing was by private money. They told him they would not close 3 days before closing. My son at my suggestion did the above. The letters arrived the morning of the closing. It hit the fan as they say. The agent and owner had tried to kill the sale, as they could sell it for a lot more money to another buyer who was willing to pay the higher price. They had called their attorney, and were advised to close as they could not win.

They closed that afternoon, as the owner did not want to tie the property up for a couple of years and then have to sell at that price, as they needed the money to put in their business.

Little trick I have seen used several times, that I learned at a University Real Estate Law class I took before going into real estate commercial/investment brokerage.