Backing out of a purchase agreement?

Question

Without getting too long and drawn out here. The wife and I signed an agreement to purchase and we have decided not to purchase. No deposit has been given, and the contract was written as such that the contract was due 3 months before completion date. With no deposit given, do we have much to worry about in simply walking away?

Answer 1

No ............with no money.......they may feed you a line but just tell that you lost your job or whatever.............trust me if you had money down...........it would not be your money anylonger so if you don't want it.........now's the time to say so.

Answer 2

Yes, you have a LOT about which to worry.  You signed an apparently legal and binding contract with the builder to complete and purchase this house.  The builder has every right to expect that you will honor the contract.

If you fail to honor, you are subject to legal action for expenses incurred.  They can't force you to buy the property, but they CAN sue you for expenses incurred, including lost opportunities from other buyers.

Do NOT expect to be able to walk away without ensuing legalities.  What will happen if you end up in court ?  You will LOSE unless you can show violation of the contract on the builder's part.

Answer 3

If the contract was signed and delivered, the other party could sue you for completion of the contract.

Answer 4

They could sue, but I'm betting not.  It was very dumb on their part not to get a deposit.  This is why we require 5% upfront.

Answer 5

The purchase of what?

In Missouri, there is a 3 day law that states you can cancel within 3 days of an agreement.  You may or may not have something similar in your state.

You have nothing to lose initially by backing out since you have no deposit.  However, the other party does have the right to sue you for not completing the agreement.

Answer 6

You could be sued for completed contract, but most of the time this doesn't happen...however, with the market the way that it is, they will probably do anything to make the sale go through.