The fact that real estate decisions are likely to be the most critical financial decisions in life is the reason serious challenges may arise. Cases of people getting into real estate agreements and then backing out at the last hour are rather common. The reasons for doing this may vary from one person to the other, and the legal consequences will also vary. It is advisable to get the advice of a professional real estate attorney in your state as you plan for your transaction.
Wondering why decisions to transact are reversed suddenly? Or why a buyer decides they are no longer interested in a home? The following post paints a picture of the possible scenarios:
Walking Away From Closing
Walking away from closing happens more often in buyer’s markets than in seller’s markets. That’s because in buyer’s markets, when prices are soft, some buyers become frightened when they should be jumping for joy. Many are afraid of further declines in the market and don’t feel comfortable because all their friends aren’t buying.
The fear begins to creep in right after the purchase offer is accepted and builds.
By the time full-blown panic has set in, it’s typically a day or two before closing. Can they do that? Can a buyer walk away? Sure, but it can hit a buyer where it hurts, right in the pocket. Read more at The Balance…
Anxiety can get the best of any buyer, and deciding to pull out of a deal could seem to be the better option. Before you jump into any option, ensure that you consult with an expert real estate attorney.
This situation is not unique to buyers in the real estate market. As a seller, you can get into a situation where you don’t want to sell anymore. Learn more about this in the following post:
I’ve changed my mind about selling my home. Can I back out of the sale contract?
Dear Real Estate Adviser,
I signed a contract to sell my home and immediately realized I had made a mistake. I don’t want to sell. What are my options to get out of this?
This is surprisingly common, particularly for sellers who have lived in one place for a long time and have strong emotional attachment to a home. But it’s also problematic. Signing a contract to sell a home, you see, shows clear intent and is a legally binding pact between you and the homebuyer.
Obviously, you would be in default and leave yourself in a legally vulnerable position. That doesn’t mean, however, you can’t handle this the old-fashioned way: Buy yourself out of it. Read more at Bankrate…
Clearly, changing your mind in legally binding agreements can be costly and you need to be on the right side of the law so that you don’t suffer loss.
So how do you change your mind “the right way”? There are a few things you should consider as you make a change. The following post describes how you can do this:
How to Tactfully Back Out of a Real Estate Deal
The goal of any real estate deal is for all parties to come away happy – whether it’s the home seller pleased with the profit, the buyer excited to start life in a new home or the real estate agents satisfied with the clients’ success and commission.
But what if, before that deal closes, it doesn’t feel right anymore? How do you, as the buyer or seller, back out of a transaction without angering all other parties?
Whether the deal doesn’t seem quite as good as before or you just have cold feet, there are opportunities to back out. With the right contract contingencies and clear communication with your agent, it’s possible to emerge relatively unscathed – as long as you don’t wait too long. Read more at U.S. News…
You need to work with good advisors during any real estate transaction. Be sure to convey to them any concerns that you may have during the process, and they should help you make your decision early enough.
Make Jonathan Meek your real estate attorney of choice if you are looking to buy or sell a home in North Carolina. He will work vigorously to ensure that your experience is easy and stress-free. By relying on his expert legal advice, you can avoid the pitfalls that many new buyers fall victim to. Call Meek Law Firm South today at (980) 729-5662 or use the contact form on the website to get in touch.