Home Buying in Noblesville>Question Details

Ella Crite, Both Buyer and Seller in Marion, IN

can a offer be withdraw after accepted?

Asked by Ella Crite, Marion, IN Fri Nov 26, 2010

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Jeanne Feenick’s answer
Hi Joe, here in NJ we have a period of "attorney review" when either party can withdraw from the transaction without recourse. Once that period is over, the deal is "under contract". At that point, the buyer is protected by the contingencies written into the contract - generally that includes an inspection contingency and a mortgage contingency. If the parties cannot reach an agreement regarding inspection, the deal can be terminated. If the buyer is unable to secure the financing, the deal can fall apart under the mortgage contingency.

An attorney I work with a good bit put it very well - he advised to think of being under contract as entering a room with 2 doors for exit - one the inspection contingency door and the other the mortgage contingency door. Exiting a deal through either of those two deals can happen. But trying to leave the room in other ways, like jumping out of a window, ie, just wanting out because of a change of heart, can be trickier. In the later case, the seller may argue for some of the deposit monies. After all, he has taken his home off the market and lost time and in a declining market, the passage of time generally is not kind.

Whatever the case, unwinding a contract is best handled by a real estate attorney - please talk with yours to get good advise on how to proceed.

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
1 vote Thank Flag Link Fri Nov 26, 2010
Once an offer has been accepted and signed by the Seller and any changes initialed by both you and the Seller your offer is now a contract. Typical contracts have certain contengincies written into them, such as a mortgage contingency and home inspection contingency,m either of which may give you a reason to terminate the contract without forfeiting your earnest money deposit. You should speak to your agent (hopefully you have a buyer broker and are not using the listing agent) as well as consult with an attorney.

The worse case scenario is you may have to give up your earnest money.

I wish you good luck.
0 votes Thank Flag Link Wed Dec 1, 2010
Joe,
An offer that is accepted is not really an offer anymore but a contract that has been formed? If you do not wish to go through with the purchase, you need to be advised by an attorney, who can review the contract and let you know of available option for your specific situation. There is the possibility of contingencies as mentioned above, or perhaps there has not been a properly formed contract afterall. Please seek out an attorney with real estate experience if possible. You may be able to receive a referral from a local bar association.
Todd
0 votes Thank Flag Link Wed Dec 1, 2010
Yes, an offer can be withdrawn. But, based on your contract and the reason you want to withdraw the offer will determine whether you lose your earnest money or would face any other penalties for backing out. Hopefully you have a good agent, who can tell you your options. Good luck.
0 votes Thank Flag Link Wed Dec 1, 2010
There are ways to withdraw an offer. But if you have signatures on the contract, you are at risk of losing your earnest money. However, that doesn't mean you are absolutely bound - most contracts are written contingent on your ability to get financing and an inspection without major defects.

If you find you need to get out of the contract, then you need to talk with your agent. They will know the specifics about your situation.
0 votes Thank Flag Link Sat Nov 27, 2010
Without many details--was there any paperwork signed, was deposit money exchanged, etc.--do you have an agent and if so, what is your agent advising...also consider protecting yourself by consulting with an attorney who specializes in real estate regarding any issues you may have.
0 votes Thank Flag Link Fri Nov 26, 2010
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