Nightmare Contract! Has anyone dealt with something similar? Any advice on next steps or how to protect the seller would be greatly appreciated.

Question

Hey everyone, I could really use some guidance on this one.
I’m the listing agent, and we’ve been under contract since August 20th with a buyer who was originally supposed to be cash buyer. The seller agreed to let the buyer use his own title company (I know)!

Our original close date was September 22nd, but it was pushed back to allow more time for financing (even though this was supposed to be a cash deal). We never signed a Third Party Financing Addendum.
Now we’ve learned that the buyer is purchasing our home plus two adjacent lots and is using a lender. The title company — who also happens to be the buyer’s real estate attorney — is now claiming there are title issues, saying we can’t close.
However, my seller purchased the lot in March 2025 and built the property, and we’ve already confirmed with our original title company (who handled that transaction) that there are no title issues. It feels like the buyer’s title/lender are just stalling to buy time to secure financing.
My question:
Is there any way for my seller to legally terminate this contract without being in breach?
I know the Texas contract allows for an automatic 15-day extension for valid title issues — but we don’t believe any exist here.
Has anyone dealt with something similar? Any advice on next steps or how to protect the seller would be greatly appreciated.

David Smith · Accepted Answer

Yes, Ive run into this type of situation before, and its always frustrating when a cash deal quietly turns into a financed purchase halfway through the process. Based on what you described, it sounds like the buyers title company and lender may be using supposed title issues as a stall tactic while they try to finalize financing. Since there was never a Third Party Financing Addendum executed, the buyer doesnt have a financing contingency to rely on, so theyre still obligated to close under the original terms. At this stage, Id ask the buyers title company to put in writing exactly what the alleged title issues are and provide supporting documentation. Then have your sellers original title company issue something in writing confirming that the title is clear. Once you have that proof, you can send a formal Notice to Buyer to Close to push the issue forward. Id be cautious about terminating unilaterally without legal guidance, since that could expose your seller to risk. Its also smart to loop in your broker and possibly your E&O carrier just to keep everything documented. Moving forward, Id recommend that your sellers always use their own title company and confirm the nature of any cash offer early on too many of these so called cash deals turn into financing nightmares once the lender gets involved.

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Mia Paris

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