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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 10173
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Is there a grace period after signing a real estate

Customer Question

Is there a grace period after signing a real estate contract. Signed it this afternoon and want to cancel it tomorrow,
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: they required a $3000. deposit
JA: Is there anything else the Accountant should be aware of?
Customer: the reason I need to cancel is because the bathroom is very narrow and cannot accommodate a wheelchair. I am not now in wheel chair but am 79 and have serious arthritis.
Submitted: 2 months ago.
Category: Finance
Expert:  Rakhi Vasavada replied 2 months ago.

Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you. Please remain online for a while as I prepare your reply.

Expert:  Rakhi Vasavada replied 2 months ago.

Well, you can do this in very limited circumstances. Let me explain.

When involved in the sale of a home, it’s crucial for the buyer and seller to understand the details of the real estate contract before it’s signed and, in particular, to recognize the points at which the contract can be cancelled without penalty.

A real estate contract, once signed by the buyers and sellers, is legally binding. While contracts vary from one jurisdiction to another and each contract is individually negotiated, many have contingencies that allow either party to cancel under specific circumstances. However, neither side can just say “I changed my mind” without facing some consequences.

Having said this, -- IF AND ONLY IF the contract provides some time frame for inspection, some exit clauses, a satisfactory home inspection, etc., I do not think you can move out.

A whole lot of this would depend upon what has been provided for in the contract, but by default, in normal circumstances you cannot simply walk out of the contract.

I am sure this would help.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.

Warm Regards,

Expert:  Lane replied 2 months ago.

Good Morning. I have a different answer. My name's Lane

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If you want out of a real estate transaction and don't have any contingencies available, you can breach the contract.

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However, once you do so, you are likely to lose your deposit along with the money you spent on an appraisal, a home inspection and a title search.

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DO check the contract for contingencies. Some states' model contract DOES have various contingency clauses, but to state that you cannot get out of would be incorrect.

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