Home Buying in Memphis>Question Details

armyman86, Home Buyer in Memphis, TN

I signed a contract on a house. I am still in the 2 day time frame and have not paid any earnest money can i back out?

Asked by armyman86, Memphis, TN Tue May 21, 2013

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Where is your agent and didn't your agent explain the terms of your contract! Most contracts have a time period to back out after doing inspections, or in case you can't get a loan after all. Go read your contract and see what the time limits are for you to cancel the agreement.
0 votes Thank Flag Link Tue May 21, 2013
Armyman,
Most contracts will have "out" clauses, for things like financing, appraisal, inspections etc. They usually part of a "due diligence" period that allows you to research the property and make a fully informed decision.
Without reviewing your contract, I cant begin to tell you which "out" clause you may take advantage of to get out of your deal, but your agent should be able to advise you.
Why do you want out? If it's buyer's remorse after making a huge decision, this is understandable, but please take a deep breath and reconsider your decision to back out. You may have a few days to do this before losing your standing with the seller. Backing out now and then begging to get back in later may not be possible or if it is come with a serious financial consequence.
Best of luck, let us know how things go.
0 votes Thank Flag Link Tue May 21, 2013
If you don't pay earnest money the deal is voidable. Are you in receipt of the fully executed contract signed by both you and the seller?
0 votes Thank Flag Link Tue May 21, 2013
If both parties have signed the agreement, then you will have a mutual agreement to back out.
0 votes Thank Flag Link Tue May 21, 2013
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