I signed a real estate purchase contract 2 days ago

Question

The property is Bank owned. I was under the impression that the property taxes were less than they actually were and the real estate agent had also agreed that they were. I now want to back out of the contract. Will I lose my $500.00 deposit? Can the Bank take any legal action against me ?

Answer 1

The difference has to be material --  not just a few percent in error.  Tell the agent that he materially misrepresented the property taxes and you therefore rescind the contract and demand a return of your deposit.

The bank doesn't need any bad publicity.  And the agent doesn't need action against his license.  

Answer 2

Did you write in an out? Like a 'satisfactory' home inspection? Or contingent upon financing? If you did not then you may lose the money.

Answer 3

Read what you signed as an offer. Did the Bank accept your offer?

If the Bank did not accept your offer in writing you can withdraw your offer and the escrow agent will return your deposit. If the Real Estate Company is holding the deposit this should be very simple.

If the Bank accepted your offer the contract you signed will give you time to order inspections, get financing and other normal issues associated with the purchase of property. Any of these things allows you to withdraw your offer as long as it is within the agreed on time frames. Banks are notorious for responding very slowly and most likely you don't even have a legal agreement to purchase the property. That means you withdraw your offer immediately.