Contract Escape Routes For Home Buyers and Sellers
Contract Escape Routes
Buyer or Seller Can Cancel Without Penalty
- In the first five business days of attorney review, either attorney can disapprove the contract for reasons other than price.
- If asked to approve an extension to the dates in the contract before all contingencies are resolved.
Seller Can Cancel Without Penalty
- If the buyer doesn’t fulfill commitments like turning in earnest money or meeting the date to apply for a loan.
- If not able to find a suitable home to move to (if this was agreed to by the buyer and written to the contract).
- If unable to demonstrate a clear title to the property.
- If unable to complete the sale because of the inability to pay off the loan, back taxes or liens.
Buyer Can Cancel Without Penalty
- If the seller didn’t provide correct information on disclosures.
- If during the inspection period the buyers feel that there are too many problems to address, or if the seller doesn’t approve requests for repairs.
- If the home doesn’t appraise at or above contract price; if the buyer doesn’t want to bring in more money and the seller won’t cover the difference.
- If they are unable to obtain financing with terms described in the contract.
- If they have a home sale or home close contingency and the house doesn’t sell and/or close.
- If homeowner or flood insurance can’t be obtained.
- If problems with the HOA can’t be resolved.