Can I back out of a contact on buying a property?

Question

I have signed a contract with the seller and have given a thousand dollars to the title company. Everything is going well and we're ready to close in a month. I just found out however that a water treatment facility is being built in the rear of the house approx. 25 meters. Can I back out of the contract without legal repercussions?

Answer 1

Discuss this with an attorney. You need to see if this is something that should have been disclosed to you prior to signing, or whether you should have discovered this information with due diligence.

Any answer besides "discuss this with an attorney" is dangerous. Do it.

Answer 2

That depends upon your contract. Most have contingency clauses that will let you out if you can't get a mortgage or if an inspection reveals defects.

Discovery of future use of adjoining property could be a grey area; you should consult with an attorney on that. If it's just a treatment facility for drinking water that might not be enough of a problem to warrant breaking the contract. If it's a sewage treatment plant you'd be on much better footing to cancel the deal without repercussions.

Answer 3

Your best bet is to find a real estate lawyer who can advise you on this manner.
I beleive that once you have sugned a contract, you are locked into that purchase.
Were you ever aware or were you advised that this water treatment facility was going to be built before you signed?
I know that sounds like a dum question, but it's something a lawyer will ask. It almost sounds as if the seller of the home was trying to get out othere because he knew there was a water treatment facility being built! By law, this could be a 'fundamental 'breach of contract.

Answer 4

Very possibly. An attorney may be needed, but not necessarily. If the seller knew about the water treatment facility and his agent knew about it and didn't disclose that to you before the acceptance of your offer, then you may be able to get out.

If the water treatment facility diminishes your value, saleability, or even comfort of enjoyment of your property, you may be able to not only get out, but could even possibly sue for your own damages. If the seller is a builder, they almost were certain to have known about the facility going in. If there were neighborhood meetings about it, or public notices made about the facility going in, you could be in good shape.

I would test the waters first, before getting an attorney - the $1000 you gave to escrow just might get returned with a contract cancellation before it has to go that route. Make sure they know you are serious about going after their negligence in disclosure of all relevant and known facts about the property.

Good luck

Answer 5

If you just back out of the contract and the seller later sells for $10000 less than your original contract, the seller can sue YOU for the difference because you broke the contract resulting in a lower sale price.

As suggested, I would determine something in the mechanical inspection to be unsatisfactory or state that you want to cancel or renegotiate the sale price because of the "mechanical problems" with the house. The inspector will find something, some rot damage somewhere, something not up to code, concerns with the roof, drainage etc.

Answer 6

Greetings, I'm not an attorney...
1. Research, research, research, 1st.
2. As a rule, the office of your city or county fathers (local government, planning and zoning) already had this information for you.
3. A 3 day "buyers remorse" clause is usually standard through out the U.S. in some or most business transactions. If you are past the 3 day limit you may be looking at a long legal repercussion.
4. "Failure to disclose" all the facts surrounding your property, by the seller, may be your way out if you have to go to court, because (in my opinion) it is deceptive.
Bless you in you quest.

Answer 7

Step 1 - Ask your Realtor (the one representing you, not the seller) if there's an easy way out based on the contract. If not, then go to step 2.

Step 2 - Ask your Realtor to tell the listing agent that this is a big, bad surprise and you don't like it - can we cancel? If not, go to 3.

Step 3 - If your Realtor has not yet suggested it - talk to your Realtor and/or broker and/or attorney to see if the seller's lack of disclosing this is any kind of violation in your state. The seller may owe you compensation for your time, and money spent on appraisal, inspections, etc.

Answer 8

That sounds to me like the result of having a ream ax agent. Yes you can escape using one of several safe harbor clauses that are built into most earnest money agreements. If you havent received a sellers disclosure form in many states you can walk from the deal right up to the time of signing at escrow. Your deposit is generally considered sellers remedy for damages should buyer fail to close. The safe harbor is considered the agreed situations under which the buyer can escape the contract without penalty or forfeiture of deposit. Lastly, should a buyer escape safely the portion of deposit equal to the agents compensation can in some cases be retained or due to the agent. In 20 years of real estate I have never touched the earnest deposit but know many agents will go after it.

Answer 9

I think the laws are different in every state, but I do believe that the state I live in gives 3 days to back out on a legal contract.

Answer 10

I would definately consult an attorney, but from what I understand...until you actually close...you can always get out. Especially with that being built. Chances are you are going to lose the money you invested...but you would probably save in the long run by getting out now.

Answer 11

Depending on what state you are in, each contract has different "escape" capabilities. You definitely need to speak to your Realtor. If the facility wasn't disclosed to you and the seller knew about it, you may have recourse. Good luck