Real Estate Tips: Buying a Home : How to Back Out of a Contract on a Home

Real Estate Tips: Buying a Home : How to Back Out of a Contract on a Home

Backing out of a contract on a home for sale
can be a difficult thing to do. I’m Richard Blake and I’m here to explain a few options
you have, and how to back out of a contract on a home for sale. Two of the most important
items in the contract are the inspection period and the financing contingency. As long you
the problem lies within one of these two time frames or these contingencies. Then you can
generally back out of the contract fairly easily. Meaning what the inspection period
you’ve got about a two week due diligence time frame to send inspectors into the home.
To make sure the property is in warranted condition and in the condition that you find
acceptable. Any time within this two week period if that’s the time frame you choose.
Generally it’s within five to ten business days, anything that you find within the property
or any problems that you find, you can bring to the sellers attention at that point and
time and say hey these items aren’t warranted. At that point and time you can either back
out of the contract or renegotiate the contract. Meaning if you were to find that the roof
had leaks and needed to be repaired, that’s a major item in the home that’s going to effect
the value of the home. So if you choose that if you don’t want to move forward on the contract
you can simply back out by stating this roof needs to be replaced, it effects the value
of the home, we’d like to rescind our contract. Or if you choose to you can also renegotiate
the contract at that point and time. The second option would be your financing period, generally
your financing period is going to be thirty days. The contract is contingent upon you
getting financing as obviously as long as you’re not making a cash offer. This is going
to be a way to allow you to back out of the contract as well. Meaning if you find out
that you can’t actually afford the home within that thirty day period of time, your lender
can then write and letter saying, hey this person doesn’t have sufficient funds. Or they
you know, if you have a job loss or whatever the case may be, that your financial situation
has changed. They’ll write a letter for you and that will allow you to back out of a contract
as well. Again those are the two biggest items within the contract here in Florida that allow
you to back out your contract or back out of your offer. I highly suggest that you speak
with a real estate attorney in your area, the local area. And they’ll be able to give
you better advice on how you can possibly back out of your contract. I’m Richard Blake
thanks for your time, you have a great day.

One thought on “Real Estate Tips: Buying a Home : How to Back Out of a Contract on a Home

  1. I have a dumb Question, a friend of mine backed out of buying a home because of certain circumstances, but now would like to buy the same home. Can he still go back and buy it?

Leave a Reply

Your email address will not be published. Required fields are marked *