Backing out of a sales agreement

What is the name of your state?
California
My daughter agreed to sell her house for a price of $ 88,000 dollars subject to approval of loan.
Seller never showed proof of his capability to purchase the home.
He never contacted any escrow office.
After a few weeks she took the house off the market. She decided to keep it and rent it out.
She is now being sued by the buyer for breach of contract.
Can she back out of this agreement? Or does she have to sell her house to this person

[HomeGuru]

[quote]Originally posted by uflada
[b]What is the name of your state?
California
My daughter agreed to sell her house for a price of $ 88,000 dollars subject to approval of loan.
Seller never showed proof of his capability to purchase the home.

**A: don't you mean Buyer?
********
He never contacted any escrow office.
After a few weeks she took the house off the market. She decided to keep it and rent it out.
She is now being sued by the buyer for breach of contract. ?

**A: what contract? Was there a written contract?
**********
Can she back out of this agreement? Or does she have to sell her house to this person

**A: see above.

[quote]Originally posted by HomeGuru
[b]

Originally posted by uflada
What is the name of your state?
California
My daughter agreed to sell her house for a price of $ 88,000 dollars subject to approval of loan.
Seller never showed proof of his capability to purchase the home.

**A: don't you mean Buyer? Yes
********
He never contacted any escrow office.
After a few weeks she took the house off the market. She decided to keep it and rent it out.
She is now being sued by the buyer for breach of contract. ?

**A: what contract? Was there a written contract? It was written on a piece of scrap paper and had only her signature on it.
**********
Can she back out of this agreement? Or does she have to sell her house to this person

**A: see above.

[HomeGuru]

Oh that's just great. She sells her $88K house by using a piece of scrap paper. I am not even sure if there is a contract let alone an enforceable one. Have her take the scap paper to a real estate attorney for review.