Last week we discussed the offer process- but what happens when your offer has been accepted and you want to back out of the deal?
First things first, a Real Estate contract, like any other type of contract is a legal agreement and breaking a contract of any kind usually has consequences—so whatever the circumstances are, be sure to give it a LOT of thought before taking any action and always discuss options with your Real Estate Agent.
Good News is: If you have not officially signed the executed contract (meaning both the seller and you, as the buyer, dotted those I’s and Crossed those T’s and all parties have signed) – you are still free to scrap any pending deals without penalty. –Exactly Like What happened with our Listing @ 508 S Poplar St in HC that is now Back on Market. You can check it out here: https://www.homepath.com/listing/508-s-poplar-st-hartford-city-in-47348-46385695
If the contract is Signed, Sealed & Delivered- you will now want to review it with your agent, to see if it gives you an out for any situations (otherwise known as escape clauses or contingencies). Often, there are contingencies that allow the contract to be terminated if financing is not approved, the appraisal comes in lower than expected, or if major issues turn up during the home inspection.
If there are no applicable contingencies that allow you to cancel the deal, you will most likely still be able to walk away- but be prepared to pay. The seller has the legal right to sue you or court order you to go through with the sale (but tbh, this is a pretty rare situation). More likely, the seller could pursue reimbursement for any expenses they have incurred and there is also a fairly good chance that you will forfeit some or all of the EM you put down when the offer was accepted.
But you know what? Sellers are human like all of us, and they understand that unexpected things happen. So always be honest and explain why you want or need to cancel the sale and be understanding that while the property was tied up with your contract, the seller was losing out on other potential buyers.
For All things Real Estate Related, Check Out Our Website and Until Next Time, Have a Great Day!