What Is the Proper Amount of Time to Back Out of a Real Estate Contract?
Most real estate purchase agreements contain at least a few contingencies that allow the buyer or seller to back out of the contract during a set period of time. Apart from those contingencies, the contract is an enforceable agreement.
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Legal Contract
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A home purchase agreement is a binding contract, which in theory means you can't legally just decide you don't want to go through with it.
Contingencies
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Most contracts contain contingencies for a home inspection, financing and appraisal. Those contingencies mean you, as the buyer, have the right to back out of the contract if you disapprove the inspection, cannot obtain financing on the terms stated, or the appraisal doesn't support the price of the home you agreed to pay. Contingencies usually have short time frames, so you'll have to act quickly if you want to use one to back out.
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Considerations
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If the contingencies have already been approved or don't apply to your situation (e.g., you found another home that you like better), you don't have any legal reason to back out of the contract. If you do back out, you could lose your deposit and you wouldn't be able to recover any other costs you'd already paid such as appraisal or inspection fees.
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References
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