What to Do if a Buyer Changes Their Mind After Signing (717)
Sometimes, after signing a preliminary or final sales agreement, the buyer decides to back out of the deal.
In Israel, there are laws and regulations protecting both the seller and the buyer, and it’s important to know how to act to minimize losses.
This article explains the steps a seller should take and how to protect their interests.
Key Actions for the Seller
- Check the contract terms
- Carefully review the signed agreement: what it says about permissible reasons for withdrawal, penalties, and the transfer of דמי רצינות (earnest money).
- Retention of the earnest money (דמי רצינות)
- If the buyer backs out without a legal reason, the earnest money usually remains with the seller.
- This protects the seller’s interests and partially compensates for lost time and effort.
- Legal consultation
- Consult a lawyer to determine the lawfulness of the buyer’s actions and possible ways to claim compensation.
- Possibility of contract termination
- If the contract includes penalties or compensation, a lawyer can help formalize the termination correctly.
- Re-listing the apartment
- After resolving all formalities, you can put the apartment back on the market.
Tips from Unehasim
- Always include clear terms regarding withdrawal and earnest money in the contract.
- Keep all documents and correspondence with the buyer.
- Consult a lawyer at every stage to reduce the risk of losing money and time.
- If the buyer tries to contest the earnest money, act through a specialist to avoid legal mistakes.
Following these recommendations allows you to protect your interests and speed up re-listing the apartment.
Contact Unehasim Specialists
If you encounter a situation where a buyer changes their mind, Unehasim specialists can help:
- Review the contract terms and the rights of the parties
- Retain or recover the earnest money (דמי רצינות)
- Act through a lawyer to protect your interests
- Prepare the apartment for resale
