If you’ve ever put an offer in on a home, you may be familiar with what is known as “buyer’s remorse.” It’s that sudden sinking feeling of “oh no, what have I done,” that many buyers feel when making a large purchase such as a home and can be cause for a lot of stress. Of course, the next question that pops into your head is, “Can I terminate the contract?” While the feelings of buyer’s remorse often fade, there are occasions where you find a need to terminate the contract and walk away from the purchase. Depending on the circumstances, you may be able to walk away quite easily and in others, there may be major issues.
When Can I Terminate the Contract?
The easiest way to terminate a contract is to terminate it during the option period (if you have one). The option period is a negotiable timeline written into the contract that allows the buyer the unrestricted right to terminate the contract and receive their earnest money back. The option period is for a set amount of days from the executed date and must be paid for. The buyer will lose their option fee, which is typically a nominal amount compared to their earnest money. Within the allotted timeline, the buyer may cancel for any reason. During that option period, buyers will usually conduct their inspections of the home and use that time period to negotiate any repairs. If the two parties can’t come to an agreement on repairs, the buyer may terminate the contract.
While that may be the most common, there are other times the buyer may terminate the contract. From financing periods to performance items like delivery of surveys and HOA docs, there are several different so-called outs in the contract, but as the items in the contract are negotiable, it is hard to be specific about when you can and you can’t, since it depends on what’s in your contract.
The big answer to any questions about termination is to look at your contract. What does it say? In any paragraph where there is an ability to terminate, it will clearly outlined. As with anything, ask your agent and let them know your desire to get out of the contract and they will look for the answers for you. In extreme cases, you may need to get a lawyer involved to interpret the contract and give you the steps you’ll need to take next.
Just remember, termination is a last resort. Take a breath and figure out what it is that you’d like resolved and how you can find the answers to the issues and then maybe you’ll find that you don’t need to terminate. While we don’t like to see contracts terminate, there are times when it is necessary and the goal will be to make it as painless as possible.
image courtesy of jmlawlor
HOA docs were just delivered via email June 28th contract was signed June 5th, with a closing set July 11th. Can failing to provide buyers with HOA docs create an out for the buyer who was not aware of specific deed restrictions until past the OP?
This would really fall back to the contract and what is written in it. In Texas, the HOA addendum has timelines and recourse should those timelines not be followed.
also, sellers agent telling seller that under OP buyer is under no obligation to respond by 5 pm on 10th day only seller is required and told buyer is traveling so she can’t give signature yet. seller being told they must sign everything first.
same agent, as buyers agent said we had to sign everything first and did not give some docs with signatures from sellers to buyers but rather responded that you didn’t ask for it…….
It sounds like the issues are somewhat contentious. In cases like these, you need to turn to your agent and the answers would be based off of what’s in your specific contract.
same agent…..can never get any details in the contract correct despite being told numerous times. what’s the point of an agent who does not listen or get details right on any contracts…..
Rushes us to sign papers but never gets anyone else’s signature first
Ignores questions. Does not answer text or email he dosen’t feel like or can not answer
Agent making commisson on nearly $600,000 and trying to collect commissions on credits to seller or seller $$$ towards buyers down payment
buyer with a pre qual that says she is approved but her agent says she does not have all the down pymt money……..why is she house shopping with a pre qual if she does not have the down and how did she get a pre qual without the lender verifying ability to pay
We would also suggest that you speak with the broker if you feel you’re not getting adequate answers or solutions. It sounds like there are a lot of issues that have come up during your contract and those would definitely need to be dealt with the parties involved.