How Do I Backout of An Offer Versus A Contract?

You just found a home that you're so excited about that it makes your slap you husband. You guys are stoked! You submit an offer through your buyers agent and wait for a response from the Listing Agent.

24 hours later...

Oh my gosh. You just found an even more exciting home! This time your husband lets you tackle him in the living room of the house that you are REALLY REALLY in love with!

But what about that "other" offer? How do you walk away? Or can you? Do you have to fill out paperwork, pay a fine or plead your case?

No. The only thing IN TEXAS that you have to do is simply notify the other agent by either email, text or phone call. It's polite to have a discussion and explain why.... that way the seller can have some closure as to why. Once upon a time a listing agent here in Texas got so mad that my buyer backed out of "an offer" that he demanded the earnest money so he could cycle it through the title company ... punishment slash retribution for getting him and his seller all excited for nothing. I wish I could have assessed fines for this when I was single.

I had to educate the other agent that he and his seller had ZERO right to my buyers option fee money and/or earnest money. An offer isn't binding. An executed contract IS. Executed means the seller has signed the offer. Other parts of the country use different terminology for different things, even though they might mean the same thing. In Texas we "close" on houses, in some states they "have settlements."

Every state is different. Do not back out of a contract and then site Greg Nino as the guy who said you can get your money back. I could be wrong if you live in Puerto Rico, Ohio or California. Contact a local attorney or Realtor for clarity.