Can a buyer back out of a purchase aggreement bc they are scared. I have a signed contract by him.?

Answer 1

You have to read the contract. Typically, real estate purchase contracts provide for a deposit and a contingency period during which a buyer can back out without any consequences.

After the contingency period expires, the deposit is usually non refundable. In many contracts, keeping the deposit is your only remedy. In others, you are allowed to sue for specific performance and force the buyer to buy the property or to sue for damages. The contact will spell out your rights upon a default by the buyer.

To find your specific rights, look in the beginning of the contract under the contingency period and toward the end under the default language. Between these two clauses, you'll find your literal answer.

In practical terms, you are usually better off retaining the deposit (if the contract allows for it)and putting the property back on the market. Many times lawsuits cost more than what you would potentially recover.

Answer 2

The buyer can cancel the deal without penalty if a contingency is not met -- inspection, mortgage, whatever is in the agreement.

If a buyer simply gets cold feet, the contract should usually provide for loss of earnest money as liquidated damages or actual damages at the discretion of the seller.

Answer 3

"becuase they are scared" is not a legal reason. You would lose your earnest money.

However, if you worked with an agent they should have built in all those contingencies-- inspections, financing, etc.

So if an inspection is less than the earnest money, get the inspection-- 99% of homes have something wrong with them, even if they are brand new, and you can say you didn't like something in the inspection and back out. A broken door, an outlet that doens't work, ductwork that needs fixing, etc.

Answer 4

You can back out of this agreement. However, please check your state laws. In Illinois and Wisconsin, there are buyer's remorse laws that allow a person to get out of any contract within the initial 72 hour period. So if it's in the first 72 hours and your state has buyer's remorse laws, look for that out immediately!

Answer 5

It depends what state you're in. each state has different laws. In CA it's standard you have 17 days to back out of the sale, or remove all contingencies and move forward. It can be challenged legally though. It often depends on the request for repairs, or if the home isn't appraised for the amount the person offered. you can visit www.getAreturn.com for more info in CA.

Answer 6

A contract is only legally voidable if one of the following is askew

1>the contract itself is illegal (a contract to perform an illegal activity)

2>One of the contracting parties is underage

3>There is no compensation

4>one of the contracting parties signed under duress or was legally incapable of signing (mental illness, etc)

Other than that a contract is a contract. Just make sure you live up to YOUR end

Answer 7

Yes they can and in California if it is not spelled out deposit is non refundable you need to show lost monies and you may have to abitrate(which is doubtful if you have a good agent). This is where a good agent earns their money. Best bet is to let the buyer calm down and do what you can to facilitate them being at ease.

Answer 8

A buyer CAN back out of a purchase agreement, but in doing so they will forfeit their earnest money.

Answer 9

Tell them to take a pill and get over the nerves. Buying a house is a big decision, but backing out isn't the answer. You could lose your deposit and the sellers could sue you.

Answer 10

They can back out, of course, but there are financial consequences against them for that decision. Earnest money or more could be at risk.