Can you back out of a real estate transaction and how far along can you back out before you have to pay money?
You’ve chosen the home you thought of your dreams; appraisal's done, inspection satisfied, and you’re on your way to closing. But then, cold feet start to set in, you’re having issues with the listing agent, perhaps the builder on new construction is being difficult to work with. Whatever the issue may be you’re now having second thoughts about whether this is the right home for you or not.
Is it too late to back out?
Buyers and sellers back out of real estate transactions all the time although that’s not the goal, of course. The goal is to have the buyer and the seller come to closing completely satisfied with the way the transaction has been conducted, all happy and carefree that this has been a perfect deal; Although that is rarely the case on any transaction.
Each deal is different and every home, buyer, seller, and every party involved is going to be slightly different on each transaction. All of these factors involved can mean hiccups along the way. Although everyone is hoping for a perfect transaction and seamless closing, we can’t control other people’s actions. If you’re a buyer and you’re having second thoughts at the last minute there are some repercussions that you need to know about. Although just about anyone can back out of a real estate deal there are consequences no matter which side you’re on. If the inspection contingency has been satisfied, appraisal has been completed, and really the only thing left to do is sign, and the buyer is backing out for none other reason than they are just not happy with their purchase, chances are they will lose their earnest money deposit and possibly have to pay for an appraisal and any outside work completed such as an inspection.
If the seller backs out at this point the buyer gets their earnest money back and the buyer may even have recourse to take legal action against the seller this far along the line. Again, every situation is different and factors may be out of everyone’s hand such as a death, tragedy, something unforeseen that forbids one or both parties from completing the deal.
If you’re not quite this far along on the transaction, let’s say, before the inspection or appraisal, this is a perfect time to back out of the deal. Sellers may have a more difficult time since they agreed to put the home on the market and sell it to begin with. But buyers can usually get out of a real estate transaction fairly easily and retain their earnest money deposit. Something could be wrong at the inspection, not satisfied with the way the process is going, or simply choose a different home. Although this puts sellers in a frustrating spot, buyers will typically get their earnest money back and move on to a new home.
Again, every transaction is different but working with the right agent can help explain your situation and options to help get you where you need to be for the right end result. Call me today and let’s discuss Miami real estate, homes, and properties whether you’re interested in buying or selling.
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