Full question:
I am the buyer of a residential property in Brentwood, in escrow, scheduled to close Nov. 11. After many sleepless nights I now realize I do not want to go through with the purchase. The contingencies I put on the purchase were all met and approved by me except a final inspection of some agreed upon repairs. Can I call my agent and tell them I want out? I am willing to forego the $3000 earnest money but will they be able to make me buy the house?
- Category: Real Property
- Subcategory: Sales
- Date:
- State: Texas
Answer:
Typically, a real estate purchase agreement may be terminated if one of the expressed contingencies is not met. There also usually is a paragraph that outlines the earnest money or deposit terms. It will usually state that the amount of money placed by the buyer would become the liquidated damages for the seller in the event that the buyer fails to complete the purchase.
You would want to review the terms of the contract carefully to determine if your earnest money may be forfeited in exchange for a release under the contract.
If your purchase agreement does not state that the seller will accept the deposit as liquidated damages, then you may be forced by the seller to purchase the home (specific performance) or sued for any money damages suffered by the seller for your breach of contract.
If you do terminate the agreement and do not intend to purchase any home at this time, you would also want to review any written agreement (buyer's agreement) that you may have signed with your agent. It may expose you to some liability for commissions.
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.
