Buyer's Legal Contingencies for "backing out" of a contract

Buying a home can be a scary thing! 

Whether you're a first time home buyer

or you're looking for your dream home in the country,

buying a home is  probably the most money you've spent in a long time. 

Buyers are always thinking "Are we making the right decsion?"

 Sometimes  nervous Buyers have asked me if they can "back out" of the contract at any time. As usual, the answer is "It Depends"

Until the Seller SIGNS the Offer, it's not a contract. So the buyer can cancel his offer. However, after the seller (whether it's the owner or the bank) accepts the offer and signs it, then it is a legal contract and there are only certain reasons that the buyer can be released from the contract.

According to our contract in North Carolina, here are the reasons, or contingencies, that allow a buyer to get out of a contract. 

1. Repairs -  If the seller doesn't do the repairs requested by the buyer (after they've had an inspection), or make an allowance on the price for work needed, the buyer can walk away and get his earnest money back.
2. Cost of repairs- if the inspection shows that the repairs will cost more than the dollar amount the buyer and his agent insert in the contract, then the buyer can back out, even if the seller will agree to make those repairs.
3. Appraisal- If the home doesn't appraise for the amount that is the agreed upon price on the contract, the buyer can back out, or the seller can lower the price.
4. Loan- if the buyer's loan doesn't come through, he obviously can't buy the house.
5. Selling you present home- If you present home is on the market and doesn't have a buyer by an agreed upon date, the buyer can withdraw his offer

All of these contingencies have time deadlines to them of course. 

These dates are filled in at the time the offer is written, so the time deadlines will vary.

The seller has to have some protection, so that the buyer can't back away just because he get's buyer's remorse or finds another house.

 Oh, and just to make things more complicated, as of January 1, 2011, the whole Offer to Purchase In North Carolina is ready to change, with new guidlines and deadlines!

   You can easily see why you would need an expert to help guide you through this very important contract.

As a buyer's agent my job is to PROTECT you when you make an offer on a home so that you can be comfortable with the house that you're buying.

As a seller's agent, my job is to PROTECT you so that the buyer honors those time deadlines and we know that we're one step closer to a closing.

If you're thinking of moving in the Raleigh, Cary, Apex area of North Carolina,

start your home search here, or give me a call and I'll help you get started.