Question Details

Maria, Home Buyer in Sacramento, CA

Can buyer cancel contract if still within 17 day contingency period?

Asked by Maria, Sacramento, CA Tue Apr 29, 2008

Seller has accepted offer and inspections and disclosures are checking out, however having doubts about the location of the house and the neighborhood. Am I locked in to my contract?

Help the community by answering this question:


Typically, within the 17-day contingency, a buyer should be able to back out of the contract if he/she has not signed off on all the contingencies. This really depends on what your residential purchase agreement says. Your Realtor should be able to guide you on this. If you have signed a "Contingency Removal" Form and released all contingencies, you may not be able to cancel this contract, or may lose your deposit. Perhaps you may wish to revisit the home and neighborhood and find out what draws you in the first place. Talk to the neighbors and local city authorities if you have concerns. Also ask your Realtor for more info, and go over the contract to evaluate your position.
1 vote Thank Flag Link Tue Apr 29, 2008
No you are not locked in if you have not physically removed in writing the contingencies. That is the whole reason why you have those 17 days to check it all out, even location/neighborhood. Depending on how your contract was written, contingencies include: Loan, Appraisal, Buyers investigation/insurability, Reports and Disclosures, Prelim Title report, Common Interest/HOA disclosures, and possibly the sale of the buyers home (if that was added in the contract). Not liking the neighborhood could fall within the Investigation and possibly the seller disclosure contingency depending on what they say. If they disclose there is a noisy neighbor raising dogs, you have a right to cancel as long as that contingency has not been removed. Or if you read the CC&R and learn you can't park an RV outside your home, the HOA disclosure could be your reason. Once those contingencies are removed, if you then cancel, you will most likely lose your deposit and possibly more depending if you sign the Liquidated Damages clause.
Good luck!
Kathe van Hoften
"The Realtor with a Heart"
First Team, Laguna Niguel
0 votes Thank Flag Link Tue Apr 29, 2008
Talk to your Realtor. Everything is spelled out in the contract. Once you are waiting on loan approval, it is difficult to cancel. I would do some more homework on the area before you decide not to complete a contract. The seller won't be happy. Your agent can talk to you about options avaialble to you.
0 votes Thank Flag Link Tue Apr 29, 2008
The question remains. Is it possible for a Buyer who has signed the Purchase Agreement & paid a deposit, & there is NOTHING in the contract that permits this cancelation by the Buyer after the Seller signs all documents?
Flag Sat Jul 23, 2016
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