Home Buying in 24502>Question Details

myxrds, Home Buyer in Forest, VA

Are there any penalties if both parties withdraw from a contract?

Asked by myxrds, Forest, VA Tue Jul 24, 2012

We are in a contract to purchase a house. The loan has been approved by UW but the final commitment from USDA is still in the works. The closing is taking a little longer for the seller's comfort - he wants us to give him a definite date for closing. He is now changing his mind and we are too, because we don't think it's worth the stress prolonging the agony till closing. (He has been increasingly difficult to deal with.) If we were to mutually withdraw, what are the consequences?

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It sounds like you are trying to buy with the representation of a Realtor for either one of you:

It doesn't sound so smart at this point;
"He has been increasingly difficult..." is a really poor reason for withdrawing from such an important thing.

The only question you need to answer is; Do you want the house?
1 vote Thank Flag Link Tue Jul 24, 2012
If you agree to a mutual withdrawal with no penalties you will be fine. But you've likely already put money out for a home inspection, appraisal, termite inspection and it was a house you loved enough to contract on. Do you really want to let a cranky seller make you lose the home? You won't have to deal with him at all after settlement.

Sometimes financing is held up and if we was counting on the funds from settlement within a certain time frame as outlined in the contract he may have reason to be frustrated. I say you hang in there!
0 votes Thank Flag Link Wed Aug 22, 2012
Mysrds,
What does your contract say? Each transaction is unique and while we use some standardized forms in many states, no one can give you an absolute answer without reviewing the paperwork.
Next, why would you want to do that? Starting over with another home and the seller looking for another buyer may take longer than waiting out this process. Yes, it's frustrating to be in a state of uncertainty, but before you both jump ship, gain as much information as possible so you land where you want to.
Chances are when it's a mutual decision, there are no penalties because there are no aggrieved parties (except possibly the agents, review any agreements you both have with them too). Just don't forget you've likely already spent money for an inspection, appraisal and they have missed a significant amount of marketing time. Do they have a back-up buyer? That may explain their desires.
0 votes Thank Flag Link Tue Jul 24, 2012
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