Expert: Dick Dennis - 3/31/2008

Question
Hello Dick,  We've just put a 10K deposit down on a home in Ontario.  We have not yet had an inspection, but have found a more suitable property to buy.  Any problems cancelling the transaction and recouping our 10K at this point?

Answer
You don't say at what point you are in the transaction, Mary. Are you near the end which means you need to do the "walk-through"? Have you already been approved for the loan to purchase the property? Is it a new house? A pre-used? From a bank? From an ordinary owner?

The point is, you have to have a valid reason for cancelling the deal. A very valid reason is dissatisfaction with the condition of the property after the seller said he would fix up anything that needed to be fixed up. Another is not being able to qualify for the loan to buy the property. And there are a few other less substantial and more personal reasons. You may have a real estate agent or two to contend with (after all, they have commissions to lose) and seller who may be mad as a hornet.

Otherwise, I am suspecting you will have to close on this one, put it on the market right away and hope that it sells so you can buy the other one with which you find to be more suitable.

If a buyer had no really valid reason, Mary, how would you feel if you were the seller in a situation such as this?

I do wish you well.

Dick Dennis   dixiedee13@aol.com