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kalb0440, Home Buyer in Delray Beach, FL

cqn you get out of a contract if the home inspections reveals major problems

Asked by kalb0440, Delray Beach, FL Sun May 19, 2013

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15
Absolutely, you can get out of a contract if the inspection reveals problems with the property. Make sure you are working with a real estate agent that is looking out for your best interest when you write the contract though. Insist to your real estate agent that you want the ability to get out of any contract to buy a property if the inspection reveals any problems. Your ability to get out of a contract based on an inspection is one of the most Buyer-friendly parts of the contract. It can really come in handy if unforeseen issues arise. Josh Perkins, Your Castle Real Estate, Denver, 720-985-6834
0 votes Thank Flag Link Wed Feb 12, 2014
Yes, you should be able to get out of a contract as long as the period of time is clearly noted on the accepted contract. Your attorney and agent will work together to assist you in this matter. Also, please keep in mind that virtually all home inspections result in some kind of issue especially if you are not buying new construction. However, if the problems are "major" as you state and you don't feel comfortable in proceeding, contact your real estate agent/attorney they should be able to help you.
0 votes Thank Flag Link Mon Jan 13, 2014
Absolutely! That's what the inspection objection deadline is for! As long as you object before your deadline, you don't even have to tell the seller why you're backing out; just say dude to inspection findings. It's your Realtor's job to baby-sit those deadlines.

Dave Umphress
Keller Williams Advantage Realty
Direct Line: 303-578-0741
DaveFoundMyHouse@gmail.com
0 votes Thank Flag Link Mon Jan 13, 2014
I was told I could NOT get out of MY contract because the seller agreed to fix all the issues. Is that true? I don't actually have his pledge on paper and now he is keeping my earnest money and threatening to sue me for breach of contract
Flag Mon Aug 18, 2014
Kalbo0440,

In most cases in Colorado, the the answer is yes and you can normally get your earnest money back as well. There should be a date set in your contract for Inspection and Inspection Resolution. As long as you are within the time frames stipulated in the contract and get the Inspection Notice to the seller there should be no problem. I am sure your Buyer's Agent will go over the specifics of this with you so you understand what your options are.

Robert McGuire
Broker/Consultant
Your Castle Real Estate
http://about.me/robertmcguire33
0 votes Thank Flag Link Sat Aug 17, 2013
So many good responses, but to simplify:
- pull out your contract, or have your agent or realtor do so, that's his/her job
- if you have an inspection contingency, just meet the deadline, you don't even have to provide a reason
- if you passed that deadline, there are other means to terminate your contract:
- you may have a loan contingency
- home owner ins contingency
- if property has HOA you should have had that written into the agreement

A lot of homes are sold and bought AS IS, which means you are entitled to an inspection, and even if bought AS IS, you have the right to terminate the contract based on the results of the inspection. Buying AS IS generally means you won't expect monetary concessions for inspection issues, but you don't have to buy it either.

Contracts are legal documents that we realtors and agents are required to utilize, and for good reason! They are always slanted to the advantage of the buyer. So take a deep breath and contact your agent. He/she simply needs to complete some paper work, get signatures and always submit the paperwork for the Earnest Money Deposit Release.

the bottom line is you should be working with your real estate prof as this is an easy situation.
0 votes Thank Flag Link Wed May 22, 2013
Kalb0440,

The answer to your question is absolutely. You will have to meet the contract deadline for inspection and if there are issues you want resolved that the seller will not correct you can terminate and get your Earnest Money returned to you. The issues do not have to necessarily be major. It is up to your own discretion. I noticed that you are in Florida. I am giving you the scenario for Colorado. A good Buyer's Agent here will explain this at the initial Buyer Presentation. Hope that helps.

Robert McGuire
Broker/Consultant
Your Castle Realestate
http://about.me/robertmcguire33
0 votes Thank Flag Link Mon May 20, 2013
In Colorado, if your contract was written with an inspection contingency and you object prior to the inspection objection deadline, then you can cancel the contract and get your money back. As long as this is done in good faith, then you should be in good shape. Talk to your Realtor and look to your contract for details and to make sure that you are doing all of this in within the time deadlines.
Chuck Strauss
Your Castle Real Estate
720-318-7598
denverhomeguru@gmail.com
http://www.denverhomeguru.com
0 votes Thank Flag Link Mon May 20, 2013
I have to concur with Don Tepper. If your contract has a provision or stipulation for home inspection contingency, you should be able to walk away or back out without losing your Earnest Money Deposit.

Read the agreement carefully to check if there is a home inspection contingency and if your are within the home inspection contingency period.

Better yet, consult your realtor or attorney.
0 votes Thank Flag Link Mon May 20, 2013
In Colorado, the way an offer is usually written by a good agent should allow you to walk away from the sale based on the inspection results and get your earnest money back - if you terminate within a pre-specified deadline. Of course, quite often the inspection results provide the opportunity to renegotiate the price. Or you may ask them to correct the issues you found. However, if the inspection results weren't structured as a contingency in your offer, you may have no leverage.

You may have other contingencies you can utilize to back out, as well. Or, you can just walk away and at most lose your earnest money. Hopefully. Depends on how your agent wrote your offer.

Do you have an agent representing you in this transaction??
0 votes Thank Flag Link Sun May 19, 2013
Yes, you can cancel a contract as part of the inspection period. To get your earnest money back, make sure to terminate prior to the Inspection deadlines. You can also negotiate with the seller to fix some of the items or to reduce the purchase price. Good luck!

Nina Kuhl
Cherry Creek Properties LLC
303-913-5858
0 votes Thank Flag Link Sun May 19, 2013
if you have an as is FAR Bar contract and you are within the inspection period, the answer is yes. why are you not asking your Realtor this question?
0 votes Thank Flag Link Sun May 19, 2013
I can't speak for Florida, but in Colorado you can at Inspection Objection Deadline. Hope things work out well for you!

Bill Pearson GRI, SRES |"Your Denver Realtor For Life"
ERA Herman Group Real Estate| 201 Columbine Street| Suite 301| Denver CO 80206
720-329-1470 |Bill@DenverRealtorForLife.com
5280 Magazine FIVE STAR Real Estate Professional – 2010, 2011, 2012
0 votes Thank Flag Link Sun May 19, 2013
I can't speak for Florida, but in Colorado you can at Inspection Objection Deadline. Hope things work out well for you!

Bill Pearson GRI, SRES |"Your Denver Realtor For Life"
ERA Herman Group Real Estate| 201 Columbine Street| Suite 301| Denver CO 80206
720-329-1470 |Bill@DenverRealtorForLife.com
5280 Magazine FIVE STAR Real Estate Professional – 2010, 2011, 2012
0 votes Thank Flag Link Sun May 19, 2013
Can't speak for FL but in CO you can even for minor issues. It's part of the fine print in the contract.
0 votes Thank Flag Link Sun May 19, 2013
Yes, if you included an inspection contingency in your offer--that your contract was subject to a satisfactory inspection. No, if you didn't.

That oversimplifies it a bit, but those are the basics. Check with your Realtor or read the offer that you submitted for more information.

Hope that helps.
0 votes Thank Flag Link Sun May 19, 2013
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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