Buying or Selling a Home/We've changed our mind

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Expert: Russel Ray - 5/4/2008


Question
We found a house, solicited a mortgage broker who found funding for us. We put a contract on the house. 500.00 down. However since the time we no longer want to buy the house. What can happen now in this case? Our closing will be set forth on May 15. Can we still back out?

Answer
Hey, Karen.

Your options are going to depend heavily on what state you are in and what the fine print says in the purchase contract. Since your closing is only days away, I suspect that all of your contingencies for canceling the transaction have expired. Did you put $500 down, or $5,000 down. $500 doesn't seem like a lot, but again I don't know what state you're in. If you don't want the house and only put $500 down, then if you cancel the contract you'll probably just lose your $500. However, if you don't have a legitimate reason (buyer's remorse is not a legitimate reason, nor is simply not wanting the house anymore) to cancel the contract, the sellers can sue to force you to honor the contract. That's rare, but it does happen.

Many real estate attorneys provide an initial 30-minute free consultation, so I'd recommend contacting one so that he can read the purchase contract and determine exactly what you can do, and when.

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Russel Ray

Expertise

Through home inspections, I provide an education about real estate. I'm one of those rare home inspectors who has been involved in real estate in many different capacities: as a Realtor (in Texas), as a property investor/flipper, as a teacher, and as a marketing expert (for Realtors and home inspectors). I believe that my experience as a Realtor and property investor provides me with a different viewpoint about home inspections in that I work for my Clients, but when there are other people involved in helping my Clients, then I firmly believe in helping them, too. That includes Realtors (both the seller's and the buyer's), repair professionals (e.g., plumbers, electricians, etc.). If I can get all the players (seller, seller's Realtor, buyer, buyer's Realtor, and repair professionals) playing in the same sandbox together to accomplish goals as a TEAM (Together Everyone Accomplishes More), then I believe I have succeeded in my job as a home inspector. My profession is, in my opinion, much more than simply documenting the condition of a property and then take the money and run. I am also a rare breed in that I don't believe that one inspection fits the needs of all Clients, and I have led the industry in understanding that fact. For example, the goals of a property investor are far different than the goals of someone buying a property to live in. The goals of a seller (a pre-listing inspection) are far different than the goals of a buyer (a pre-purchase inspection). To that end, I offer 14 different types of inspections, e.g., STANDARD, LIST, RENTER, BASIC, MAINTENANCE, SPOT, and more. I believe in giving the benefit of the doubt to all professionals in whatever industry they represent until they prove me wrong.

Experience

Over 42 years in all aspects of real estate--building homes, renovating homes, inspecting homes, Realtor.

Organizations
National Association of Certified Home Inspector, Better Business Bureau of San Diego

Education/Credentials
Graduate of Texas A&M University; College Station, Texas

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