Can I cancel the buy house contract?

Question

I'm living in Oklahoma City
I'm buying a house, and everything is under contract, I've down $2000 for the contract cancelation.

After termite inspection, it come with a report that this house is damaged badly because of termite. Can I cancel the buy house contract and get my down money ($2000)?

I'm living in Oklahoma City

* If you could, please provided a proof of your answer (real estate law document, etc), so that I can show it to the seller.

Thank you all in advance.

Answer 1

Why aren't you talking to your real estate agent re. this?
Or doing your own research?

Answer 2

In that case, you can certainly cancel your deal and get your earnest money back. Your proof is in the contract that you have already signed. It says that the deal is subject to a clean inspection for wood destroying insects as well as a number of other things such as quailfying for a mortgage, etc.

Among other things, no lender is going to lend you the money if the house is infested with termites. Just provide a copy of the inspection report to the lender and they'll be happy to turn down your loan. This won't hurt your credit at all, by the way. I've gone through it more than once myself!

Even if your contract doesn't mention these most courts would rule in your favor if you backed out of the deal since a prudent person would not buy a house that was infested with termites and could not be compelled to purchase home without the funds to do so.

And if you don't have any kind of written contract at all, then the whole deal is null and void as real estate transactions MUST be in writing.

Your real estate agent will probably be returning your check on Monday anyway, so don't worry about it!

Answer 3

If you made the offer subject to your acceptance of the termite report, then you can cancel out based on that.
All real estate offers (made by competent real estate agents), always have escape clauses, like being able to get specified financing, or that the property is up to certain standards. If any of these conditions are NOT met, they are an automatic way out of the contract.
If such clauses were NOT included and you are stuck, you can get to the selling agent and have him take care of it because of malpractice, for which he should have insurance.
In this latter case, you could forfeit your deposit and then sue the agent in small claims court for reimbursement, since he did not do things right. Another option.
First talk to the agent and see what he has to say.

Answer 4

Your proof is in your buy/sell contratc which you signed. There is a contingency clause there which mentions termites or insect damage. It also states what must be done if insects &/or damage is found.

It is likely to say that below a certain amount of damage you have to allow the seller to fix the property. If the sellor does not you can get out of the deal with a return of your deposit. And it will state that it is the buyers opetion as to continuing the selling process.

Additionally the deposit should have gone to an escrow agent to be held not the sellor. They are obligated to return the funds.

In any case you need to act quickly and make all requests in writing or you will get screwed.

Good luck

Answer 5

What you'll most likely want to look for is in your offer to purchase. There should be a section that describes contingencies or there should be an inspection clause. What a contingency is in essence you telling the seller, I will fulfill my duty to this contract if these conditions are met. If these conditions are not met then I do not have to fulfill my obligations.

Answer 6

depending on the terms of the sales agreement you signed you may be able to rescind. read the contract carefully or take it to a re atty.
sometimes the owner may have a right to repair

Answer 7

The circumstances under which you can cancel are set forth in your contract. You need to read it instead of asking people who have not read it.