There are many reasons why a buyer may need to get out of a real estate contract, maybe a problem was discovered during the inspection, there is a problem obtaining financing or something else may have come up. It could be as simple as the buyer getting cold feet or they may have had a change of heart.
As with all contracts, all parties should enter into them in good faith; this is especially true in real estate contracts. But, with that being said, there are some ways for buyers to get out of a contract. If you feel that you need to break the contract for one reason or another, we are going to list some of the most acceptable ways in which you can do so.
A standard real estate contract typically includes various contingencies that allow buyers to step away from a signed contract. One of the most common is that the buyer is agreeing to purchase the home based on the results of an inspection. If something should be noticed during the inspection, the buyer has the right to walk away from the deal. Other conditions that can allow buyers to get out of their contracts include improper loan appraisals, problems with property disclosures, and problems with the title report or loan issues. These are all acceptable contingencies that provide buyers with the option of walking away from the deal.
In the case of a buyer experiencing cold feet once they have signed a contract; many use the inspection contingency included in many contracts to get out of it. It is not required for the buyer to disclose what they may have seen or noticed during an inspection to take advantage of this clause. Although some attorneys may be able to argue in favor of the seller; real estate contracts are often designed to protect buyers. If you come down with a case of cold feet and are unsure whether or not the property is right for you, you have the option of using the inspection clause to break the contract.
Many real estate agents will do their best to ensure that a deal is properly handled to the best benefit of the buyer and seller. If the problem is something small or affordable the agent may be able to renegotiate with the seller to solve the problem. However, there are some cases where the buyer simply wants to walk away from the deal. In this case, any of the contingencies we have listed above are enough to help sellers get out of a real estate contract.