Home Buying in 40107>Question Details

MarieH, Home Owner in 40004

What will happen if we change our minds about a home that we had made an offer on with a contingency if we decided we don't want it after all?

Asked by MarieH, 40004 Thu Jun 2, 2011

We saw a home and made an offer on it with a contingency to sell ours, we had ours under contract but the buyer couldn't secure financing so the contract with the house we made an offer on subsequently ran out. We made a good faith deposit upon signing the sales contract. What I am wondering is will we get our deposit back or loose it? Are we in breech of contract if we don't go through with buying the house we no longer want? We haven't said anything to our agent yet about changing our minds about the house, I guess because they are the same agent for the house we were going to buy, and we feel sort of bad about changing our minds. Any advise will be greatly appreciated. Thanks.

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I'm confused by how you've worded your question, so it's hard to tell if you are in breach of contract or not. Sounds like you're not, and you should not lose your earnest money. But the real person to ask is your agent. You shouldn't feel bad. It's just business. He/she will understand.
2 votes Thank Flag Link Thu Jun 2, 2011
Vanes,
It appears that the contingency you have on the home to purchase was contingent upon the sale of your home (not tied to any specific buyer). If your home is still on the market for sale then you are still in compliance even though the offer on your home fell through. Not sure what expired with the purchase of your next property. If you do not want to buy the home you have a contact on you should talk to your agent as soon as possible. If there are no issues, you should be entitled to get your deposit back.

All the best,
Gary Geer

http://www.GaryGeer.com
1 vote Thank Flag Link Thu Jun 2, 2011
Hi Vanes,

I'm not sure what you mean when you say "the contract with the house we made an offer on subsequently ran out".

If the house you made an offer on had a contingency that you would sell your current house and you did NOT remove that contingency IN WRITING, then the contingency is still in effect and you can cancel contract since your current home did not sell. As long as the contingency has not been removed (in writing), you should get your good faith deposit back.

I'm also assuming your agent is trying to sell your current home and is also the listing agent for the home you are under contract to purchase? If that is the case, they know your current house deal fell through. They should also know then that your contingency allows you to cancel contract on the other house. Now, if you know longer want to sell your current house, just let your agent know you want to cancel the listing. You need to communicate with your agent.

Good luck.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
1 vote Thank Flag Link Thu Jun 2, 2011
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