Does a home seller have to pay for their own lawyer if the home buyer backs out of the deal or will the realtor front their legal fees?

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  • 4 months ago
    Best answer

    Generally the "liquidate damage clause" in the purchase contract would cover such matters and the case would be heard in small claims court that doesn't allow lawyers. Other wise the seller would be responsible for attorney fees, not the Realtor. Today most purchase contracts have a "mandatory arbitration clause" that keeps parties out of courts, other than small claims.

    While it would be the sellers responsibility (not the Realtor) to pay for an attorney in a legal dispute between a Seller and Buyer the purchase contract will probably have "legal and attorney fees clause" that provides in a law suit the prevailing party in the lawsuit could collect legal and attorney fees from the losing party.

  • 4 months ago

    The listing broker won't pay your legal fees. Sellers are foolish if they don't retain their own lawyer to review and approve the purchase agreement and represent them in the transaction through the closing.

  • Eva
    Lv 7
    4 months ago

    Realtor will not front the fees. The seller is entitled to the earnest money the buyer put down.

  • 4 months ago

    The realtor won't pay any fees incurred by the seller/buyer. However, if the sale doesn't happen there's normally not any lawyer fees, unless you hired one. Normally the lender uses an atty. from the title company & fees aren't charged until closing.

    Source(s): Mortgage lender 33 years.
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  • Judy
    Lv 7
    4 months ago

    The seller would have to pay it, the realtor won't front it.

  • 4 months ago

    The seller pays his legal fees but if he prevails in a court action then he is usually awarded legal fees.

  • 4 months ago

    Realtor will not front legal fees, doesn't happen.

  • 4 months ago

    Generally and unless agreed in advance otherwise, the seller remains responsible for any legal fees they have incurred

  • Anonymous
    4 months ago

    Your realtor is not your banker other than the ernest money the other side has put down. You want to purse collecting damages, you will need to hire an attorney.

  • 4 months ago

    A lawyer will not be needed if it is a clear cut case of a buyer breaking the contract. Seller keeps the deposit.

    But you need to know why the buyer backed out. Read the contract. There may be contingencies that allowed him to.

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