Backing out of the purchase of a house after appraisal. Can we do it without being sued?

Asked by Melissa Gillespie, Louisiana Tue Aug 26, 2014

We've been in the process of buying a house. One of our inlaws was constantly talking about moving in with us which would make buying this house just fine for us. Now she's talking vehemently of backing out and finding her own place. That's fine but it makes things harder on us. There's just the two of us, and this house would be 1620 square feet. It's really big, especially since we don't think we'll have kids.

With the inlaw backing out, we're really worried.

I've been trying to find info on the paperwork we signed that will tell us what penalty we'd suffer so close to the sale (with the appraisal, it turns out that it's $1500 under what we were going to pay for it. The seller may or may not be willing to just blow that money off).

Our agent is telling us that we may get sued. Not sure what to do here. Where do I find info on the penalty on the paperwork? What form?

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Answers

3
Stephanie Ca…, Agent, Metairie, LA
Thu Sep 4, 2014
I am a Louisiana Realtor. There is no way to tell if you are able to back out or not without seeing your contract. Since you are using a Louisiana Real Estate Agent you are required to utilize the LA agreement to buy or sell. If this is what you have done then refer to lines 100 - 107. They deal with the appraisal portion of your contract. It does allow a right to the seller to reduce to price accordingly within whatever stipulated time frame you have given them. My recommendation is to partner with your real estate agent and a title attorney for your best course of action.
0 votes
Christopher…, Agent, Tarrytown, NY
Tue Aug 26, 2014
It depends on whether or not this was a contingency in the purchase contractor. You will have to look that over or speak with a real estate attorney for advice.

Chris
0 votes
Dan Tabit, Agent, Issaquah, WA
Tue Aug 26, 2014
Melissa,
I'm no expert on LA practices, but in most of the country your earnest money is the most you have at stake. If your agent can't answer the question directly, ask to speak to their broker. If that person plays games with you get an attorney to review your paperwork and advise you, but do it NOW. There may be other ways out of the deal that preserve your earnest money but it's dependent on timing and the terms of your contract.
We can't know that or advise you specifically.
0 votes
Sorry Melissa. Not sure why my comment posted as a reply to your.
Flag Thu Sep 4, 2014
I am a Louisiana Realtor. There is no way to tell if you are able to back out or not without seeing your contract. Since you are using a Louisiana Real Estate Agent you are required to utilize the LA agreement to buy or sell. If this is what you have done then refer to lines 100 - 107. They deal with the appraisal portion of your contract. It does allow a right to the seller to reduce to price accordingly within whatever stipulated time frame you have given them. My recommendation is to partner with your real estate agent and a title attorney for your best course of action.
Flag Thu Sep 4, 2014
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