Where you are in the house-buying process determines whether you can back out of the deal without financial consequences. Once you get to the point of closing, however, you retain the right to pull out, but it’s likely to cost you. Real estate contracts are complex, and having an experienced Greenville real estate attorney in your corner from the start is always to your advantage.
Buying a House Is a Big Decision
Every home purchase involves – to one degree or another – a leap of faith. There is not only the immense expense but also the unpredictability of the market to consider – all in the context of where your life is heading. All told, it’s a lot, and if you have second thoughts about purchasing a home, it’s important to know that you are not the first person to find yourself in this predicament and that a seasoned real estate attorney can help.
Things Become More Challenging Moving Forward
The closer you are to closing on your home purchase, the more difficult it becomes to back out, which means the consequences increase. Buying a home comes down to the creation of a legal contract between the seller and the buyer. The contract is called the purchase and sale agreement, and it specifies the terms that both parties agree upon.
Until you and the seller have signed off on this contract, either of you can back out without facing much, if anything, in the way of consequences. All you’ll need to do is withdraw your offer to purchase the home.
Once the Contract Is Signed
Once you and the seller have both signed on the dotted line, the only way to back out of the contract without financial consequences is if the contingencies included within aren’t met. Contingencies refer to terms that must be lived up to in order for the contract to become legally binding, and common examples include:
- A home inspection contingency which helps to ensure that the home is fundamentally sound
- An appraisal contingency that safeguards you if the home comes in at a lower value than the sale price
- A mortgage contingency that allows you a specific amount of time to procure financing
- A title contingency that allows you to inspect the status of the title
- A sale of prior home contingency, which protects you if you’re unable to sell your current home by a specific date
- A homeowner’s insurance contingency, which can nullify the contract if you’re unable to obtain the necessary homeowner’s insurance
If you back out of the purchase after signing the contract – when there is no issue related to an included contingency – you can expect to lose your earnest money. And in a worst-case scenario, you could find yourself in court.
Discuss Your Home Purchase with an Experienced Greenville, SC, Real Estate Attorney Today
The practiced real estate attorneys at Blackacre Law LLC – proudly serving Greenville, South Carolina – are well-versed in the intricacies of real estate law and are committed to protecting your rights throughout the process – while fiercely pursuing a resolution that favors you. Learn more by contacting us online or calling 864-775-5400 today.