A real estate purchase contract is legal and binding. Once both parties sign the agreement, they're expected to abide by its terms. As such, backing out of a contract can often be an expensive proposition. However, most contracts also have clauses that allow either party to walk away from the transaction with no penalty if certain conditions are met. You are always free to take the help of timeshare exit company experts who can help you in all ways. Following are few ways that could be logically discussed:
When You Back Out as a Buyer:
Most real estate contracts contain contingencies that allow you to cancel the purchase in certain instances. As long as your contract has contingencies, typically, you can back out of the deal without sanction. For example, a home inspection contingency gives you the right to inspect the property and to back out of the purchase if the inspection doesn't meet your expectations. Financing contingencies let you back out if you can't find suitable financing for your purpose.
When You Back Out as a Seller:
When you're a seller, your options are much more limited. Most contracts put the control of the deal largely in the buyer's hands. However, if the contract has contingencies, it probably also requires the buyer to take certain actions in a timely manner. If the buyer fails to perform, you may have the right to cancel the transaction.
When You Backing Out after Liquidated Damages:
If a buyer backs out of a transaction without invoking her rights under a contingency, the seller could sue her to force the transaction to move forward or for damages. To avoid this risk, most contracts contain a clause that allows the seller to keep the buyer's deposit if the buyer backs out. Since non-refundable deposits are technically not valid under California real estate law, most contracts describe the seller's retention of the deposit as "liquidated damages."
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