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RealEstateAnswer
RealEstateAnswer, Lawyer
Category: Real Estate Law
Satisfied Customers: 23978
Experience:  9+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
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In Oregon, can a home buyer break a purchase agreement anytime

Customer Question

In Oregon, can a home buyer break a purchase agreement anytime before the closing date without being held liable to purchase the home?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  RealEstateAnswer replied 1 year ago.
Hi! I will be the professional that will be helping you today. I look forward to providing you with information to help solve your problem.
Good afternoon. I certainly understand the situation and your concern. Once the contract is signed and executed by all parties, it would be legally binding and the terms and conditions stated within, will control. With that being said, to back out and break a contract, there needs to be a legal basis to support it. If the inspection period and any other periods or conditions have passed to cancel and back out, then you would be expected to close on the agreed upon date. Now, as far as your liabilities, those are going to be stated in the contract, under the damages section. If they want to force you to buy the home, they would have to seek specific performance. That is very unlikely to occur but they can sue you for damages, on top of the earnest money which would be lost. Of course, if you do not want to go forward, speak with them and try and work out a deal. See if they will just agree to keep the earnest money and let you walk and if you give them advance notice, it could minimize and additional loss to them. Re-read the contract which you signed, which should stated the remedies available to either party, in the event of breach. This way, you know what they could go after you for and what you would be liable for, if you back out. If you do not say anything and next thing you know they go and buy another home in reliance on this deal and incur other costs, they may try and recover those damages as well.
Please let me know if you have any follow up questions or need any clarification on something which I stated above. Also, remember to rate my service before exiting the site, so I can receive credit for my help. I hope you found it to be Excellent! Only rate my answer when you are 100% satisfied. If you feel the need to click either of the two lower ratings to the left, please stop and reply to me. I want to make sure your experience with the site was as pleasurable as possible and that you are satisfied with the help I provided.
Expert:  RealEstateAnswer replied 1 year ago.
I just wanted to follow up and see if you had any other questions or needed me to clarify something. I am here to help, so please let me know. Thanks!
Customer: replied 1 year ago.
I haven't received your response to my question yet. Again, here is the summary of additional information that I sent for your review: I have entered a purchase agreement for a property in Portland, Oregon. The inspection was completed and my real estate agent prepared a repair addendum. The sellers stated that the repairs are complete, but I don't feel comfortable that the repairs have been completed as requested. However, when I asked my real estate agent to ensure that the repair addendum provided a clause that would protect my earnest money and recourse if the seller failed to make repairs to my satisfaction, the real estate agent stated that Oregon law didn't permit such a clause. The only recourse that I would have if not satisfied is to take the sellers to court. Since the area of concern has to do with the foundation, and I would need to cure the balance of the repairs cited by the inspection report along with preferred updates to the house that I would like to make, I would rather avoid my concerns about the repairs to the foundation and all the costs that I will incur if I purchase the house, by just walking away from the agreement. I don't mind losing my earnest money, but my real estate agent stated that I should get legal advice before terminating the agreement as is I would also incur some legal obligations in addition to losing my earnest money. So, I'm contacting your service for the advice regarding Oregon law and my obligations as a home buyer.
Expert:  RealEstateAnswer replied 1 year ago.
Yes, I certainly understand.have you re-read your contract and looked at the damages clause? If so, what was contained within?
Customer: replied 1 year ago.
I'm reading it over now, is there a buyer's remorse law in Oregon that can protect me if I want to get out of the deal?
Expert:  RealEstateAnswer replied 1 year ago.
No, there is not. As I shared above, the terms and conditions of the contract are going to control. Those remedies and damages available to both parties are going to control. The contract may limit your damages to just the lost of the deposit or may allow them to go after you for additional damages as well. Moreover, it may allow them to elect to sue for specific performance but I HIGHLY doubt they would go that route, as there is no way to know that you could even get the finances, if it really came to it, so they would be wasting their time and could end up with nothing.
Expert:  RealEstateAnswer replied 1 year ago.
Did you find anything contained with?