2007-10-09 08:45:50 · 6 answers · asked by yp_steve_springfield_929 1 in Business & Finance ➔ Renting & Real Estate
Typically the loss of your earnest money deposit.
2007-10-09 08:50:39 · answer #1 · answered by Mortgagemom 3 · 2⤊ 0⤋
I assume that you're a buyer and not a seller? The "penalty," if there is one, will be found in the real estate sales contract. Most real estate contracts allow a buyer to cancel within a specified period of time, which is when the buyer has the ability to inspect the property. If the buyer cancels during this time, there usually is no penalty. However, if the buyer cancels after this period of time, the penalty is usually forfeiting the good faith deposit. All of this is negotiable, though, so it's important to check your specific agreement (and see if there are any laws in your state that are applicable). Deborah (San Diego, CA)
2007-10-09 16:00:22 · answer #2 · answered by Deborah E., San Diego Realtor 1 · 0⤊ 0⤋
That depends. Are you the seller or the buyer?
If you're the buyer your offer agreement should have included a clause that provides for loss of your earnest money if you fail to follow through with the deal unless one of your contingency clauses applies.
If you're the seller, you have little chance of backing out of the deal. You can be sued for specific performance and be forced to complete the sale. The buyer can slap a lis pendens on the property and prevent you from selling it to anyone until they proceed with their suit against you. If you've accepted a higher offer, the original buyer can take the extra profit straight from your closing with the other party.
2007-10-09 16:40:22 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
It depends on the circumstances.
If you are just backing out, you will lose your earnest money.
Should there be a problem with an inspection or something else that you have covered in a contingency, there may be no penalty.
2007-10-09 16:19:42 · answer #4 · answered by godged 7 · 0⤊ 0⤋
Your agent should be able to answer that best. If you don’t have one, contact a real estate attorney in your area.
Your situation will depend on your local laws, how far into the transaction you were, and what your contract said.
2007-10-09 16:34:42 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It's typically what the mortgage lady answered. However if the sellers relied on your promise and they went and did something based on that reliance and now they will be substantially hurt financially if you back out anything goes.
2007-10-09 15:53:30 · answer #6 · answered by newmexicorealestateforms 6 · 1⤊ 4⤋