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Unfortunately, there is no grace period on such a document; however, you need to review the actual contract because if it is a standard one, it should allow you different ways to get out of it. For example, most of the time, you are allowed an inspection. If, after the inspection, you want to cancel the contract for any reason, you can. These contracts also let you cancel if you cannot secure financing. So please read it carefully and look for ways that are clearly stated for you to get out of it. If worse comes to worst, and you back out anyway, the owner can sue you for breach of contract but s/he is not goingto have much in the way of damages if the property has only been off the market for a few days.
Also, the cost of litigation being what it is, s/he is most likely not going to sue anyway.
The document is a generic contract of deed that doesn't really refer to anything regarding inspection (at least we didn't cover that when we signed). The only thing that I have read in the contract regarding "default" is that if we don't pay, they retain all rights to the property.
Okay, it looks like they used a watered down version then.
Best thing is to talk to the owners and if they let you out of the contract, get a release in writing that you owe them nothing/
If they won't let you out, you can default but don't expect yoru first payment back.
Yes, it was a really bad decision on our part (in our haste in wanting a home so badly).
No problem. Hind sight is always 20/20!
If they are at first unwilling to let you out without giving up any right to sue for breach of contract, ask if they will accept a small settlement. Say, maybe the first and second month's payments.
But if they do agree to let you out, please don't forget to get a general release. You can find one here: http://www.delafe.com/form/frmgrel.htm
Okay, I think I will give that a try. Although, I am not sure how that will pan out since we are already experiencing "bad" communication.
Oh, thank you.
If you have to default, then you have to. They would retain a right to sue for breach of contract. All they would get would be a couple months worth of payments and maybe some money towards advertising the place again. But it's only about 25% likely that people sue over this.
You are very welcome!
Thank you again. Good information for thought.
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