Although we don't see this too often, backing out of a home purchase deal that is possible in some instances. However, it's not without consequences.
This article gives you a general idea of what to expect should you cancel your home purchase agreement after it's accepted. However, it should not take the place of professional legal advice.
Have more questions about buying a home? We can help! We're the home loan experts and are ready to assist you with all your mortgage and refinancing needs.
After you sign the home purchase agreement, you are legally bound to the terms of the contract, including putting down a deposit called "earnest money." Earnest money assures the seller that you are committed to following through on the home purchase.
There will, however, be contingencies in place that allow for you to legally change your mind about buying the home even after the earnest money is deposited in an escrow account.
Like we mentioned, changing your mind after signing on the dotted line is not without repercussions. Backing out of a deal without contingencies may be possible without legal action by using a mediator. If there's no resolution, the next step may be to plead your case in a courtroom.
The no-fuss way to get out of your home purchase contract is to do so through the contingencies. Contingencies are conditions that must be met for the contract to be binding. A common condition has to do with the home passing the inspection.
Timelines are often part of the conditions. For example, if the home inspection revealed mold damage, the sale of the home could be contingent on repairing the damage within 14 days.
Things can get very tricky when it comes to backing out of a legal agreement outside of the conditions. Not only could you lose your earnest money, but the seller could seek further legal action. Keep in mind that this scenario is not commonplace, but it is a possibility.
The home purchase agreement is as much about protecting the seller's interests as it is about protecting yours. Don't be alarmed. Instead, be informed. Need more information about being a smart homebuyer? Contact us today for a free consultation.
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: #181106, 227666
Barrett Financial Group LLC strives to ensure that its services are accessible to people with disabilities. Barrett Financial Group LLC has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
Barrett Financial Group LLC makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows scottsmithloans.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
The Barrett Financial Group LLC accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
Barrett Financial Group LLC continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on Barrett Financial Group LLC website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on Barrett Financial Group LLC website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: firstname.lastname@example.org