Home Buying in 94517>Question Details

rufapek, Home Buyer in Concord, CA

how buyer can legally back out when a home in escrow?

Asked by rufapek, Concord, CA Thu Apr 18, 2013

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This is America, you can do whatever you want but this is also California and backing out of escrow means the seller and his lawyer will have a say based on what was offered initially in your contract. Be very careful about this sort of thing with a Realtor CAR contract. They are considered good faith contracts and the consequences for backing out could be costly.

Like everyone said below, for best information, consult an attorney for good advise with the exact situation.
0 votes Thank Flag Link Fri Apr 19, 2013
Since you are asking a legal question, it's really in your best interest to consult with an attorney who specializes in real estate; have the contract reviewed and go from there...
0 votes Thank Flag Link Thu Apr 18, 2013
Hi Rufapek:

Your Realtor® should be answering this question for you! You have not provided enough details of your situation so you will be receiving generalized comments - yet, another reason to speak with your Realtor®!

Assuming use of the most current CAR purchase contract you have three primary contract contingencies (inspection, loan, and appraisal). Note these three contract contingencies require written and "active" removal - passing a certain date does not typically remove the contingency (REO Addendums may remove the "active" element in favor of a "passive" removal).

Even after active removal of the Inspections Contingency, I believe Para 6.A.(1.)(4.) may allow cancellation of the contract by Buyer when a material fact has not been disclosed by Seller and not known by Buyer via inspection.

0 votes Thank Flag Link Thu Apr 18, 2013
As a buyer, if you are within your contingency period, you may back out for any reason and get your deposit back. If you back out AFTER the contingencies have been removed, you will lose your deposit and risk legal action for breach of contract.
0 votes Thank Flag Link Thu Apr 18, 2013
Presumably, you're the buyer, and that you used a realtor?

If so, you and your realtor should review your contract which spells out your legal rights and obligations. More than likely, you will want to review the terms, your contingencies/conditions pertaining to buyer inspection, appraisal and loan approval.

If you haven't cleared all those contingencies, you can still back out and hopefully get your deposit back.

If you cleared all those contingencies but you back out of this agreement, then you will be in breach of contract... and you may also lose your deposit but no more than 3% of your purchase price.

If you didn't use a realtor, and you and the seller hammered out your own agreement, best that you see a real estate attorney for help.
0 votes Thank Flag Link Thu Apr 18, 2013
There are lots of ways, but depends on where you are in the transaction. Your agent should be able to answer this for you.
0 votes Thank Flag Link Thu Apr 18, 2013
Yes but the question is will you lose your deposit. That depends on the contract.
0 votes Thank Flag Link Thu Apr 18, 2013
You may want to seek advice from an experienced real estate attorney who can walk you through the contract and any contingencies stated within.
0 votes Thank Flag Link Thu Apr 18, 2013
Whenever there is a potential breach of contract, and the other party is not willing to release, the best approach is to contact legal council/attorney. Hope you get things worked out.
0 votes Thank Flag Link Thu Apr 18, 2013
They can if they included CONTINGENCIES in their Purchase Agreement and they have a good REASON, (relating to one of the contingencies).

Remember that they signed a CONTRACT!
0 votes Thank Flag Link Thu Apr 18, 2013
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