How can I terminate my real estate purchase offer due to liens?

Full question:

I have recently signed an offer to purchase real estate and am now finding out that there are two separate liens on the property. How do I terminate this offer?

  • Category: Contracts
  • Subcategory: Recission
  • Date:
  • State: Illinois

Answer:

To terminate your offer, you'll need to consider the specific facts and documents involved. Key factors include whether the seller guaranteed a clear title or if the sale was agreed to be 'as is.' Typically, if the seller did not provide warranties about the title, it is the buyer's responsibility to uncover any claims on the property. A title company often conducts a title examination, and title insurance may be available.

Consulting a local attorney is advisable, as they can review your documents and circumstances. Generally, a contract may be rescinded for reasons such as fraud, incapacity, duress, undue influence, material breach, or mistake. To prove fraud, you must show that the seller intended to deceive you. If you relied on misleading information and suffered harm, you might recover damages.

To establish a material breach of contract, you must demonstrate that the breach was significant enough to render the transaction worthless. Courts will assess the situation based on all relevant facts and circumstances to determine if a material breach or fraud occurred. If found, the contract may be rescinded, and damages could be pursued.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Yes, you can back out of a house offer after signing, but it depends on the terms of your contract. If the contract includes contingencies, such as a clear title or financing, you may withdraw without penalty. However, if there are no contingencies or if you are in breach of the contract, you might face legal consequences. Always review your contract and consult an attorney for specific guidance.