What possilbe penalties would I be facing if I breached a contract for sale?

Would it be possible to still be forced to sell my house, even though i have no wish to? Monetarily, how much can the penalties reach? How long does this process usually take? Is there anyway to research good attorneys in my area (New Jersey) that could plead my case? Are there any other legal issues I should be worried about? Are there legal aid organizations that specialize in this?

If the contract is legally binding, the buyer can sue you for specific performance. If you lose, you would be required to complete the sale, and you'd probably have to pay the buyer's cost of litigation.

Every contract is unique: if the terms in the contract for sale, left some provision for backing out at some point of time before the actual sale, then there is no penal;ty as such, there is only some contractual obligation to meet some condition for backing out. Look at that contract carefully, from that point of view, you will see the point!

I am certain the buyer tried to make the contract binding. They have probably spent money and your backing out would cost them even more money. An Attorney will probably suggest you offer to pay all their losses plus maybe another $1000 so they will walk away and not sue.

Look carefully at why you want out. Maybe you just have normal cold feet. Are you willing to pay an attorney, plus settlement costs?

loss of any money put up, and maybe
getting sued