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Just "spend" your downpayment money and then you won't get approved for your loan. Simple pimple. Do NOT just walk away you are in a contract and that is binding right now. Last year a friend of mine was selling a house and the buyers walked away 3 weeks before closing. She sued them for the difference between what she sold the house to them for and and what she had to list it for when they walked. It was $75k and the non-buyers have already paid it.
Yes, you can break it. It is not official until the "CLOSING" documents are signed. Attorney review means nothing. Go ahead and move on. Only thing you can lose it what was put in Escrow.
While obviously no one can force you to buy a home you don't want to buy, being in breach of contract leaves you open to potentially being liable for damages to the seller. most often times, a seller won't bother suing, but it can happen.
as others have already stated, using the inspection or finance clauses of the contract to get you out is the way to go.
I hope this thread has at least made you realize you need to get advice from an actual attorney and not an internet message board on a matter like this.
I'm about to list my house but spoke to my attorney because if I accept an offer but then I get a job after attorney review, but before closing, I wanted to know if I could back out of the sale. Her answer was it would depend on the buyer. If they buyer is nice and wants to let me out of the contract it's all good, otherwise I would be in breach of contract and then I would probably have to spend a lot of money to get out of the deal. After all, what's the point of having a contract if there aren't any terms?
I wouldn't have felt good about backing out of the deal but I had to ask the question since I don't really want to sell my home. Now I know that once I sign the contract it's pretty much a done deal.
If in the contract offer you put in the Home inspection section that there is a limit of X ammount of dollars for mold remediation and if as a result of the inspection mold is founded and the cost of remediation is higher than the limit, then you can breach the contract. Usually buyers can get out of contract due to home inspection reports, but you have certain ammount of days after reiceipt of copy of that report to brech the contract. Usually is 3 days. Anyway, I recommend you to stay with your Attorney suggestions because you are paying for that Attorney's fees.
My wife and I found a great short sale house and made an offer on it with our Real Estate Broker. We signed the offer at her office and went home. She recommended a Real Estate attorney for us and sent the offer to his office. The seller accepted our off and Next thing you know we are out of attorney review.
The attorney set an expiration date of December 31st for the banks to come back with an approval. Remember its a short sale so both banks have to agree on the sale price.
So here we are about 7 weeks in and my wife and I found an even better house in a different area, not a short sale and even less expensive.
I want to get out of the first house deal but my attorney says im officially in a legal binding contract now and can't get out.
I never put any money down. Usually the broker takes a thousand dollars but we never did that. So what exactly do i have to lose if I just walk away.
Don't you have to sign a real contract in order to be in a contract? I signed a simple offer to purchase. This is our first house in NJ so forgive me if im not fully understanding of certain laws that might be unique. We want to make an offer on this second house and I don't feel legally obligated to the first one.
Any help or advise is greatly appreciated
Thanks
You definetely are under a binding contract. If in the contract offer you put in the Home inspection section that there is a limit of X ammount of dollars for mold remediation and if as a result of the inspection mold is founded and the cost of remediation is higher than the limit, then you can breach the contract. Usually buyers can get out of contract due to home inspection reports, but you have certain ammount of days after reiceipt of copy of that report to brech the contract. Usually is 3 days. Anyway, I recommend you to stay with your Attorney suggestions because you are paying for that Attorney's fees.
Good luck
Whew, "I only signed an offer to purchase" - and what do you think that is? It is a legally binding contract. You signed it, hopefully you read it. Your attorney has advised you that you cannot unilaterally disregard the contract. Did you ask your attorney what are the consequences if you do not continue on with the sale?
The poster who said you can walk away is seriously misinformed. You DO have a contract. And there is a procedure for dealing with a broken contract: it is called SPECIFIC PERFORMANCE. What happens is that the other party can take you to court where the court can ORDER you to proceed with the performance of the contract terms or assess you some hefty financial penalties. I seriously suggest you ask the attorney for more information.
contact another attorney for another opinion. i can give you the name of mine if you PM me. he's in morristown and was very thorough and erred on the side of caution, so i'd be comfortable with what he tells you.
What did you end up doing in your situation? Am curious as my boyfriend is involved in a similar dilema.
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