Can real estate buyer back out of a contract because there is no guarantee of no oil or gas drilling?

Texas Within 11 days of closing on our home the buyers want to back out because we can not guarantee there will never be drilling of oil or gas on our land. We do not own the mineral rights. We have incurred ,500.00 in moving expenses because they insisted we give them possession upon closing, we ask for 3 days after closing and didn't receive such. We lowered our price for them and jumped thru every hoop they put up. We are willing to let them out if they reinburse us the ,500.00.

7 Responses to “Can real estate buyer back out of a contract because there is no guarantee of no oil or gas drilling?”

  1. linkus86 Says:

    The key word in this situation is DISCLOSURE. If you disclosed that you did not own the mineral rights to the property at the time, or before, the contract was accepted, then they can't back out of the contract. If they do anyway you can sue them for more than than the good faith deposit like your expenses, and loss of time the house would have been actively marketed.

    IF this important piece of information was discovered later, perhaps after they had a title report done on the property or you just happened to mention it, then they have every right to back out. If they added the need for the guarantee as a contingency to the original contract, they can back out of the contract because you can't overcome the contingency. Sorry.

  2. Derrick Says:

    They can not back out of that contract as long as the contract wasn't misleading.

  3. larry r Says:

    It's time for you to stop giving in to them. They are playing you for as much as they can get. If you have a real estate agent representing you, he/she needs to let the buyer's know you intend to retain their earnest money and sue for your expenses if they fail to close. The standard purchase agreement has language dealing with mineral rights to the state. If they didn't understand that, that is not your fault. Assuming they qualify for financing, and the purchase agreement they signed did, in fact, contain language relating to mineral rights, you can force them to close or risk losing their earnest money and any expenses you incurred to move out prior to closing. If you are doing this transaction without a real estate agent, get a lawyer to draft a strongly worded letter to the borrowers informing them of your intent. It sounds like they are trying to "weasel" their way out of the deal and this is the only thing they feel they have to hang their hat on.

  4. Ray R Says:

    Of course they can back out, the question is will they be held liable for a breach of contract? Have they actually "accepted" the offer, or did they merely give you terms upon which they would accept the offer? If they have accepted the offer, and you breach the contract by backing out, then they owe you nothing. If they've breached the contract, then you can sue them for the $1500. It all depends on the terms that you two agreed upon.

  5. Bluto Blutarsky Says:

    Not sure about texas law, but generally you can't back out if they wanted a guarantee, they should have bargained for it before signing the contract.

    Don't agree to that. Tell them if they don't go through with the deal they will forfeit thier downpayment. Grow some balls. you hold all the cards here. They have been pushing you around because they smell you are desperate.

    You would be a shmuck to guarantee such a thing in the first place. it is thier problem. once you close, thats it you should be out. If they want a guarantee like that have them pay you something in the millions for it. It is a ridiculous limitless guarantee. If they want a guarantee for a number of years give it to them for a HIGH price. If they don't like it, send notice that if they don't show up to the closing (time is of the essence) that they will be held in breach and you will keep thier downpayment.

    Truthfully it sounds like they need to move in at a certain date because they too are moving out of thier old place. If they don't like it tough shit, they should have asked for the guarantee beforenand. You should tell them to either close or forfiet thier downpayment.

  6. jenngiraldi Says:

    The minute you had binding agreement the buyers had whats called "equitable title" for the land. They are binded by law to buy it unless there were stipulations that werent met.

    http://www.jennsellsfast.com

  7. blondee_n_az Says:

    I am assuming that in Texas, most people don't get mineral rights with the land. You may want to reason with them and tell them to ask around about other properties and mineral right….OR ASK YOUR REALTOR….If you sold FSBO, that is what you get for being cheap!!!
    You want this place sold obviously because you gave them everything, so it sounds like you made your own bed. A deal is never done til it's done.
    They are in a contract with you. You can sue them for performance, which usually is merely winning earnest money. I hope you didn't bow down and take a tiny earnest payment too.
    AGAIN, REASON WITH THEM ON THE FACT THAT IT WON'T BE AN EASY TASK TO FIND LAND WITH MINERAL RIGHTS AND HOPE YOU CAN KEEP THE DEAL AFLOAT. Don't use that you are being put out so much, because they won't give a damn and it will make then want to walk more….GOOD LUCK