How do you get out of a real estate purchase?

Question

I'm selling my place, but there might be problems with the sale. Meanwhile, I have signed a sales contract on a place out of state and have put $5,000 earnest money down. I have my financing as well. I did not make it contingent on the sale of my place, however. Any loopholes to get out of it if I have to?

Answer 1

Most contracts have contingencies for approval of title, property condition, survey, HOA documents, etc. Review your contract, or have an attorney review it to find what contingency rights you have, and then use them.

Answer 2

Things to consider: How disappointed will you be if you let the house you bought go? Is your current house in a market where it will be easy to sell to another buyer? What will it take to keep your current transaction together? If you really want out of the transaction and hope to recover your earnest money, check out the following: If you used a standard financing addendum, it should have language regarding what happens if you fail to qualify for the loan. Will you still qualify without selling? If no, you should be able to cancel. Whatever you do, don't sign a cancellation agreement before the seller agrees to refund your money. They cannot accept another offer without first successfully cancelling your deal. That puts you in the driver's seat on the cancellation and raises your chances of recovering your earnest money.

Answer 3

The previous answer is right. Home Owner's Asso document is usually mentioned and typically you can get out of the deal saying you find something you don't like. That is probably the cheapest way to get out. Survey and property inspection would give you a chance to get out, too, but you may have to spend money. Read your contract and talk to your Realtor.

Answer 4

Are you ready to loose your $5000 dollars. as long as you have not closed escrow on your new place you can back out. Call the seller or sellers agent and tell them that you had an unforeseen financial hardship and you will not be able to complete the transaction. Also call your Mortgage broker and tell them that you decided not to complete the transaction.