What if we back out of purchasing a home a month or so before closing?

Question

Both parties have signed a purchase agreement and we have paid $1000 in earnest/good faith money. Clearly if we back out now, we lose the money--I am ok with this. BUT--can the home owner sue us/force us into buying the home? I am scared to death, sick to my stomach about this. I can't reach my lawyer until tomorrow.

We have many reasons for backing out, one being that we feel the house is causing me health problems--every time I go over there I come away sick, and this is most likely due to my allergy to dogs--the home owner has an incontinent dog . We chalked it up to coincidence at first, but I keep getting sick there!

Answer 1

Call you realtor and tell them that you won't be able to complete the purchase of the house because you get sick every time you go over there.  Your realtor is going to ask you to give her a short note that she can present to the seller's agent.  Keep the note simple:  {Your name} and {your husband's name} regret that they are unable to complete the purchase of the property at {property address, city, state} that was scheduled to close on {expected closing date from contract}.  Sign it and date it.  Your realtor will know whether any other information is required to be in the letter.  In some states, even though you are forfeiting your earnest money, you have to formally request the return of the money and the sellers have to formally refuse.  In other states, your note cancelling the purchase can simply acknowledge that the $1000 earnest money is to be retained by the sellers.  Your realtor will know which is required or expected in your locality.

Be prepared for a counter offer from the sellers, especially if they are getting desperate to sell.  They may offer to have the carpet and padding replaced after they move out, and they may offer to have professional cleaning done on the walls and flooring.  Or they may offer to reduce the selling price so that you can use part of your mortgage money to remove the carpet and pad, clean the house, and then get new carpet and padding.

You don't have to accept this counter offer, but it might be worth considering.  If you have a lot of allergies, there's no guarantee that any given house won't contain something your allergic to, and you could be faced with the same clean-up type job wherever you go.

But good luck.  You don't have to buy the house if it makes you sick.  

Answer 2

You have asked this question 4 times!!!!!!!  And the answer is still the same.

The owner CAN and should sue for damages.  

You had the chance to have the home inspected and if the problem didn't come up, it's not the owners fault.

Answer 3

Depending on how long the seller has had the house off the market, he or she may ask for some more money to cover what they lost in expenses.  Typically, if these expenses did not excede the amount of the earnest money, they will just keep the earnest money and call it a day.  They cannot force you to buy the house.  So, chances are, all you have lost is the earnest money.  Take a deep breath...it's gonna be okay.

Answer 4

You risk not only losing your earnest money, but also lawsuit for damages and/or specific performance.  If the seller has passed by other offers because of your offer or has incurred considerable expense, there's a chance they may sue for damages.

If this ends up in a court battle your chances are not good.  A judge/jury will wonder why you did not get sick the FIRST time you visited the house, if that is your excuse.

I've seen a couple of these cases in my real estate years, and they get ugly if the seller is persistent.

After reading your previous three questions on this, my guess is that your allergy is the least of your reasons for backing out, but it seems most convenient to you. You are having 'buyer remorse', and are looking for a way out of what you agreed to purchase.

Do not take this lightly.  Check with your attorney, and be prepared with copies of all your current paperwork thus far.

Answer 5

YOU need not go further.  YOU said you have no problem losing

your earnest money.

Walk away with no further obligation.

If you have not "accepted" the house inspection, you will

even get your deposit back.

IT makes no sense that after your first visit, that you

had any further interest in the house!!!

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