Can I Back Out of Buying a House?

Let me start by saying, yes, you can withdraw from a contract. I’m going to walk through your options if you are buying a home in Hampton Roads, Virginia. Second though, this is not Target, and you don’t get free returns for 30 days. If you want to back out, do it during the contract timeframe.

To start, your safest way to back out of buying a home or, the technical term, terminate a contract is during your contingency timeframes. The contingencies give you a way out of a contract until certain items are deemed satisfactory.

Listen along!

Check out the Maroon Group Podcast.

Your first contingency is your home inspection. After the home inspection is completed, you can decide to terminate the contract for any reason, and the seller cannot stop you.

The second contingency is a termite and moisture inspection. You will be required to provide your mortgage company with a clear letter showing that the termite and moisture company has given the home a clean bill of health. If any repairs are required before the termite and moisture company can issue a clear letter, the seller has to do the repairs up to 1% of the purchase price. IF the repairs cost MORE than 1% and the seller is unwilling to do the repairs then you also have the right to walk away.

Your third contingency is a homeowner association if you are purchasing in a neighborhood that has one. If the neighborhood does, you will receive the homeowner association documents to review. You have 72 hours to review, during which you can terminate the contract for any reason.

Finally, if the appraisal comes in lower than the sales price and if the seller is unwilling to reduce the price to the appraised value, then you can also terminate the contract.

 So, four protections exist for you through the process. The best and cleanest time to walk away is after the home inspection. In my experience, 99% of terminations happen after the home inspection.

 If you are curious to better understand how you will be protected during your purchase reach out to us, we would be happy to help!