Profile picture for faceny1968

Is it possible to cancel contract after seller and buyer has agreed on price

  • June 04 2011 - Albany
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Answers (8)

Yes, there are several reasons you can cancel without legal penalty:  during your deligence home inspection phase and issue are discovered, if the title search is not clear, with mutal consent of both the seller and buyer.   Cancellation under other conditions would normally come with legal penalties.
  • June 06 2011
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If one of the terms of the contract are not met then you can. And a Mutual release is signed by all parties.
  • June 06 2011
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Profile picture for sunnyview
Yes. You can often cancel under the terms of the contract after the contract price has been accepted. Often there are financing and inspection contingencies that allow cancellation in a specific time frame. Or you can cancel by mutual agreement.
  • June 05 2011
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faceny1968,

The simple answer is yes.  The details of the situation can answer the following question, "At what cost"?  It can be as simple as a mutual agreement to cancel all the way to legal action with damages awarded.  This is another great issue that can be addressed by employing a good local Realtor.  Good Luck!

Capt. Shawn
  • June 05 2011
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In New York, you normally have contingencies built into the contact that allows either the buyer or seller to back out of the contract.  As with any legally binding contract, you should consult your attorney to find out what options you specifically have.
  • June 05 2011
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Profile picture for wordsmth
Sure. In fact, agreeing on price is only the first step.

A contract likely has contingencies. The buyer, for instance, may make the contract contingent on a home inspection. And/or on financing.

The seller generally requires that the buyer make loan application within x days. And there are others.

If the buyer has a home inspection contingency and the inspection turns up certain problems--problems that the seller is unwilling or unable to fix--the contract can be cancelled. In some states, it's customary to have legal review of the contract. It's actually advisable in all states. If there's a contingency that the contract is subject to approval by counsel, and the buyer's lawyer doesn't approve, that's an "out."

All of those examples can allow the party with the contingency to cancel the contract and--with approval of both parties--have any earnest money
deposit returned.

Even without those, one of the parties can cancel the contract. But then one party might be liable for damages, payment, or other penalty. Check with a lawyer for details.

Hope that helps.
  • June 04 2011
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It is possible to cancel anytime but depending on where you are in that contract you could be facing legal action.   Hopefully it is early...

Good luck, hope this helps.

Oh, consult a real estate attorney!
  • June 04 2011
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Profile picture for nwhome.us
That's what contingencies or a well written agreement are for.  Contingencies include: inspection, feasibility, financing, title, resale certificate, neighborhood review, short sale etc.
  • June 04 2011
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