What reasons can be given for cancelling a purchase contract before escrow is opened?

Asked by Alisha Wade, Scottsdale, AZ Sat Aug 24, 2013

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6
JR Thrasher, Agent, San Diego, CA
Sun Aug 25, 2013
Buyer side can walk at any time that early in the process. The seller is limited, if you are on the seller side, it's best to just let the buyer know that you do not want to move forward and send them a cancelation.

J.R. Thrasher
http://www.SanDiegoRealEstateVeterans.com
619-929-0105
0 votes
, ,
Sun Aug 25, 2013
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Alex Greer
NMLS #1056079
0 votes
Steven Ornel…, Agent, Fremont, CA
Sat Aug 24, 2013
Hi Alisha,

From a practical matter the Seller really has no "tools" until the good faith deposit has taken place.

In my discussions with CAR Legal it appears to come down to while there may be a valid breach of contract argument, proving the Seller has been damaged may be difficult.

I also spoke with a 20-year Real Estate Mediator whom boiled it down to these three pertinent facts:

1) In practice, the question of damages has to be proven,
2) There's likely no deposit in Escrow, and finally,
3) The Buyer has all of their contingencies to fall back on.

When this type of situation(s) occurs it seems best response/practice is to get the property back on market ASAP! In my case, I sent a cancellation of contract with the reason being “Buyer request and/or anticipatory breach.”

Of course, these situations are not always the same, so a review of the facts by a legal advisor is many times a prudent step.

-Steve
0 votes
Pacita Dimac…, Agent, Oakland, CA
Sat Aug 24, 2013
Better that the buyer withdraw at once and let the seller put the home back on the market with very little time lost

Since you're the buyer -- are you getting cold feet? Did you find something better? Usually, buyers are required to open escrow and submit the initial deposit check within 3 days. IF you haven't done so within the agreed-upon time frame, otherwise, the seller will have grounds to cancel the contract.

The seller will surely prefer not to have to deal with the buyer's issues, whatever the reasons are.
0 votes
Cindy Davis, Agent, San Diego, CA
Sat Aug 24, 2013
I'm not sure why you are asking, but honestly, it doesn't really matter. Buyers usually have a window where they can back out of acontract for any reason.

Good luck.
0 votes
Venancio , Agent, Dublin, OH
Sat Aug 24, 2013
Honesty is the best policy!
0 votes
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