Can I Back Out of a Home Purchase If I Already Signed a Contract And Placed Money in Escrow?



Can I back out of a home purchase if I have already signed a contractand placed money in escrow? My answer to the question is, yes. If you don't close on the contract, then you are in breach. And so ,you look at the contract and it will say what the seller's rights are customarily. It provides that you lose your deposit. And the seller is entitled to the deposit. There may also be other remedies in there that says that they have a right and equity or write a specific performance. I have talked to any number of people, who have backed out of contracts and, the realtors or other people are wanting them to go through with the transaction have said all that. They're going to sue you to make you go through with the transaction. Well, that is really not a very practical remedy on trying to make someone buy the property. And that it is very expensive. As far as the attorney fees are concerned, the seller property stays off the market while they're going through this exercise, which the whole purpose is to selling the property. And so my experience over many years is that after a certain amount of threatening and snorting and blowing, the seller agrees to accept the deposit as their damages and the buyer moves on and loses their deposit. So yes ,you can. And then you just need to look at your consequences. The sooner you decide not to purchase the property, I suggest you notifying the seller so they can put it back on the market and get it sold and exit the contract. You have any questions? Give me a call at (727) 847-2288.