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Backing out of a contract to buy a home

| Aug 13, 2019 | Real Estate Law |

In Wilkes-Barre and Philadelphia, Pennsylvania, buying or selling a home often falls through for various reasons. A buyer may later decide they no longer want to buy a home after their offer has been accepted. In this case, a complex legal matter may ensue. However, it is possible to get out of a signed real estate contract if the prospective buyer includes escape options before the signing.

A quick answer to the backing out issue is that a buyer can get out of an accepted real estate offer if the signed contract has contingencies. This legal option also enables most buyers to obtain refunds on their earnest money. However, sellers and realtors are not fond of buyers who back out of their contracts. A contract must stipulate specific reasons that make backing out a legally acceptable option.

It is worthy to note that backing out of purchasing a home is a simpler process if the buyer backs out before signing a contract. Plus, contingencies do not necessarily last forever. Once they expire, a buyer may face legal ramifications. Examples of contingencies include having a professional inspector inspect the house, getting finances approved by the lender, selling a home before the contract takes effect and appraising the home for a lower amount than the loan.

A home inspection contingency usually takes care of unexpected repairs and expenses. Lack of disclosure means that the owner has to repair the problems within a specified period. If this does not happen, the proposed buyer can back out of the deal and real estate closing. If in doubt about whether to complete a transaction, a prospective buyer has the option to consult with a real estate lawyer. A consultation may enlighten the client about their legal options and provide insight and clarification to a complicated situation.