2: Can you get out of a home purchase contract?by Tim Manni
I have to admit, I was a bit surprised this year when I saw “Can you get out of a home purchase contract?” as one of the most popular articles on our site week after week. One would assume that the uncertainty of the mortgage and real estate markets of 2011 (when this article was written) had passed.
Either more and more homebuyers were dropping out of sales contracts, or they wanted to be prepared just in case they had to.
Not buying a house might seem like a straightforward proposition. After all, there’s no law or moral imperative that anyone must purchase a home. However, suppose someone signed a contract, agreeing to buy a property for a certain price subject to certain terms, and then decided to back out. That would be a more complicated issue.
Contingencies offer outs
Prospective homebuyers who want to escape a purchase contract should turn first to the agreement itself. Most states require that real estate contracts be in writing to be enforceable, and most real estate contracts include contingencies, or conditions, that must be met for the deal to close.
Contingencies offer various ways to cancel a contract up until the minute when the contingency is either met or its associated time period expires. Which contingencies are included in a contract depends on state law, local custom and negotiation between the seller and buyer.
Be sure to read “Can you get out of a home purchase contract?” in its entirety.