How to Cancel a Home Buying Contract

You have spent your days searching high and low for a house. You finally find one and you are pressured to put in an offer. You do, and it is accepted. But, after a few days of sitting on it, you realize that the house you just bid on isn’t right for you – or perhaps you found something even better. The contracts are clear in home buying and you may be worried about your earnest money deposit or what will happen if you back out.

Could You Be Sued?

Home Buying ContractYes, a person could technically be sued by the seller for not keeping up his or her end of the bargain, as the contract stated, but this is rare. Most buyers are not forced to purchase a house they no longer want, and the odds are the seller will gladly pick up and relist the home for sale to find someone else. But, sellers will get to keep the earnest money that you have offered with your bid. In addition, there could be other damages awarded if the sellers do decide to sue you.

However, there are contingencies in those seller contracts that buyers need to recognize. These give you justification for pulling out of the bid—and don’t give sellers much choice but to accept it. These can include:

Financing – All seller contracts have contingencies regarding financing. If the buyer cannot secure financing, then the contract is cancelled. But the buyer may still lose their earnest money deposit.

Flaws – If the seller did not disclose everything about the house or there was unpermitted work discovered, then the buyer could back out and still keep their earnest money deposit.

Liens – If there are any liens on the home, the buyer can also back out (usually) without sacrificing their earnest money deposit.

If you are backing out because you have cold feet, then this might not be enough of a reason to save your earnest money. And, depending on how much you put down, you could lose a few hundred or thousands for your case.

Also Read : Should You Put Your House into a Trust?

Contact the Real Estate Professionals at Campbell Law Group Today

Regardless of the reason you feel you want to back out of a purchase, it is best that you speak with a Miami, FL real estate attorney any time you want to break a real estate contract. We represent residential homebuyers that have found themselves in over their heads. We can assist you with your home buying contracts and if need be, cancel that contract and help you avoid any harsh penalties.

For more information on how we can help, call us today to learn more about our real estate services by calling 305-328-9506.

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Written by The Campbell Law Group

The Campbell Law Group

Regina Campbell, Esq. is the Managing Partner of The Campbell Law Group based in Coral Gables, Florida. Her prior entrepreneurial experience in building businesses has not only given her the opportunity to develop and hone her business acumen, but has also shaped her background and knowledge to better position the firm to serve and understand all of its client’s needs in an ever-changing global economy.