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What happens if I walk away from the deal just before closing ?

Asked by Looking, Thu Dec 13, 2012

We decided to buy a house, made an offer, offer was accepted , the appraisal was good, the loan processing started. But if we have decide to walk away from the deal, What will I loose, other then the deposit we made to the seller ?

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What happens, if your lawyer is not in communication with you throughout the entire deal. He e-mail you the day before closing and tells you that you will owe 5,400 in property taxes and other fees, and you were never made aware of that amount. Also, you ave already put 12,005 in escrow , and are closing with a seller concession. I have a closing tomorrow, and the this is my scenario and I want to walk away from this deal. What are the pending penalties that could occur? In addition the bank had already cleared me for a specific amount. I'm truly frustrated about this process and need some clarity. Please help.

-Mr. Johnson
0 votes Thank Flag Link Thu May 12, 2016
I think you will only loose deposit as a liquidated damages which is specified in your purchase and sales agreement. If another buyer jumps in and seller's damages are less than your deposit you may have a claim on the difference. Courts will never force you to buy the house, as you will be signing against your will and really under duress. Specific performance can only be ordered by court to force the seller to sell and not the buyer buy, there is a big difference, seller only has to sign the deed, while the buyer all kinds of papers. Realtor from Texas gave a slightly different opinion, it may be true in some states, RED states tend to be more seller or business friendly, why the BLUE states are more consumer frendly

Paul F. Esq.
0 votes Thank Flag Link Thu Jul 16, 2015
This is a question for your attorney.
If you have signed a contract, you could potentially get sued for specific performance.
You want to refer back to your contract.
It could be tough for them to force you to buy the house if you don't have the cash to do it yourself.
They may not want to tie the house up in litigation long enough to do it.
The question is do you want to take that chance.
Can you still get a loan in the future, if seller's are suing you or have judgements against you?
Is your realtor involved? What is their advice?
0 votes Thank Flag Link Fri Dec 21, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Looking,

We also would be curious to know what happened for you to change your mind since you are fairly well along in the buying process.

As others have indicated, "walking away" does have definite drawbacks that could be costly. Since most contracts involve contingencies that include but are not limited to financing and inspections, it may be beneficial to explore these as avenues by which to legally exit your agreement.

As always, in matters involving contracts and possible legal issues, individuals would be well advised to consult an attorney.

Good luck,

Bill
0 votes Thank Flag Link Sat Dec 15, 2012
Why would you walk away from the deal? What changed your mind?

You are making a big step by buying a home... It almost sounds like buyer's remorse, which is a very common thing. Kind of like the second thoughts you had right before you got married. Are you ready? Is it the right one? Do you really want to be tied down with this mortgage?

Take a couple of deep breaths. If nothing significant has changed since you decided you were ready to buy a home, then you are ready. You are just letting nerves and emotion cloud your good judgement. If something has changed, talk to your real estate agent about what your options are.

Best of luck to you,

Brian Rayl
B&B Realty Group - Keller Williams Elite Dallas Park Cities
214-699-1799
Brian@Rayl-Estate.com
http://FindDallasHomesForSale.com
0 votes Thank Flag Link Sat Dec 15, 2012
Besides losing the earnest money as it was said you could be sued for specific performance of the contract. You should go over the contract carefully with your agent and if necessary a real estate attorney. Review all areas of the contract to make sure you still do not have other ways to get out of it. Real estate contracts have several areas where you can get out... I always make sure my clients know and understand all of these because while most contracts do end up closing sometimes things arise and it is important to understand and know all of your options.

Best of luck to you.

_______________________________________
Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157
listings@dongroff.com | http://www.AustinListed.com
0 votes Thank Flag Link Fri Dec 14, 2012
Breaching a contract is a serious matter and should not be done without the advice of your attorney. Being sued for specific performance is a possibility. More likely would be a suit for damages caused to the seller. After all, he may have lost the opportunity to sell it to someone else while tied up with you. At the least, expect to lose your deposit.
0 votes Thank Flag Link Thu Dec 13, 2012
you could be sued for specific performance.
0 votes Thank Flag Link Thu Dec 13, 2012
First, no one here has reviewed your contract so any responses would be nothing more than speculation. Has the seller breached the contract prior to now? Are you past all contingency periods? Do you have other contractually allowed termination avenues?

Too many unanswered questions so your best bet is to seek the advice of counsel prior to making a decision to intentionally breach the contract.
0 votes Thank Flag Link Thu Dec 13, 2012
Thank you for your reply, Seller has not breached the contract, yes I am past all contingency periods,
The only default clause I see is "If Buyer fails to comply with this contract. Buyer will be in default and Seller may (a) enforce specific performance, seek such other relief as may be provided by law or both or (b) terminate this contract and receive the earnest money as liquidated damages, thereby releasing both parties from this contract.
Flag Thu Dec 13, 2012
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