How to Back Out of a Real Estate Deal
Buying real estate properties is a really big decision. You may need a large amount of money for the down payment, and a monthly commitment is necessary to pay the mortgage. The responsibility that comes with this purchase might be overwhelming, especially if you are a first-time homebuyer. One good thing about real estate transactions is that you can back out, regardless of the reason why. There are a couple of ways to do it. However, you need to understand that there are some consequences. If you are planning to withdraw from the sale of a home, here’s how to go about it.
Back out before the offer is accepted.
The contract between you and the seller doesn’t take effect unless both parties have signed it. This means that both of you should accept the offer, otherwise, the agreement is void. The contract should have two signatures before it becomes official.
The easiest way to back out from a real estate transaction is by withdrawing before the offer is accepted. If at all possible, walk away before the seller signs the agreement. At this point, withdrawal is as simple as telling the sellers you are not interested in buying the property anymore. Remember that it only gets more complicated after the seller has accepted the offer.
If the offer has been accepted, withdraw before the contingencies.
Contingencies are a part of real estate contracts. Every transaction has these. They are simply the processes that need to be executed for the sale to move forward. For example, contingencies can be repairs and inspections. They are basically the things that need to be completed before your home can qualify for a mortgage. Withdrawing before the contingencies is also an effective method of walking away. At this time, you have signed the contract already and paid the earnest money. So, a lack of interest is no longer a sufficient reason to back out of the deal. To successfully back out, check the contingencies and see if there is a significant amount of work that needs to be done before the sale. Too many necessary repairs is a good reason to withdraw from the purchase of a home.
In this regard, you still need to be a responsible buyer, so you can get the earnest money back. This means that you still have to comply with your responsibilities and deadlines until you get the chance to back out. Being honest with your real estate broker is the best thing to do, so he or she can help you assess your options.
Walk away at any time.
As a buyer, you can just walk away at any time. But, walking away comes with sacrificing the down payment you have made when you signed the contract. Backing out without giving a valid reason can forfeit your money and that amount serves as compensation to the seller. In case these methods don’t work, JAM Properties, LLC is here to help you find real estate solutions. Call us now at 949-438-4343, and we’ll help you deal with your property issues!