ANSWERS: 1
  • You must read your contract. There are normally numerous ways to end a real estate contract - for example, they Seller refuses to fix something you want fixed or you do not approve of the house after an inspection. Maybe you don't get approved on your mortgage at a rate that you thought you could (and this contingency is in the contract). A shrewd lawyer can help you! Read your contract for ways to terminate it. The penalties are usually guided by your contract as well; however, many real estate contracts don't list penalties because once you are under contract and all contingencies have been met you can't get out of it. A court can force you to buy the property against your will. Remember, your decision to back out of the contract may cause considerable damage to the Seller (i.e., the Seller may be under contract to buy a house which is contingent on you buying her house). Don't forget your realtor will want her fee too! She's earned the fee even if you back out! The best thing to do, after you've consulted an attorney, is offer the Seller a few thousand dollars to get out of the contract.

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