buying and closing: backing out
It May Not Be Too Late (Or You May Have to Pay)
Need to back out? It’s okay — until you’ve reached closing day, you most likely can, and it starts by being honest as quickly as possible. In some instances you may be walking away from your earnest money, so be sure to consult with your agent and attorney to understand the ramifications of backing out.
The optimal time to pull an offer is before the purchase agreement has been signed. At this point, it’s fairly easy to back out as not all parties have signed the agreement. Outside of contingencies and sellers not providing required fixes, ensuring your offer contract includes an out-clause is valuable.
If, however, there is no clean break, the seller may have the legal right to sue you or at a minimum seek reimbursement for their expenses incurred during the process.
Hopefully this is not the case, but buying a home is a complex and emotional process that includes lots of risk if rushed or done poorly. We trust, however, with this guide you’ll be confident in your home search.