Once the sellers accept your offer, the contract goes into escrow. Can a seller back out after signing closing papers?Technically, a seller can back out any time before the escrow records the grant deed. Escrow kicks off after you sign the purchase agreement from a buyer, and it ends when all the funds are disbursed at closing. You can't use it as a reason to back out, but if the seller can't make closing then they'll have to back out and you can accept that from them. The termination option allows the buyer to pay a small nonrefundable fee on top of the earnest money after signing the purchase contract. We have included this section to help answer many of the commonly asked questions, and to help demystify the transaction process. The buyer or the buyer's lender will place funds in a thirdparty account such as an escrow or title company transfer account. Yes, a home seller can back out of a real estate contract, but only in instances in which they're willing to compensate the buyer for their trouble. Fidelity National Title provides professional escrow settlement services that are a convenience for the buyer and seller.