If I have already put a $5,000 deposit down on a home and signed a purchase agreement but have not signed the papers from the bank, amI obligated now?
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If I have already put a $5,000 deposit down on a home and signed a purchase agreement but have not signed the papers from the bank, amI obligated now?
Asked on January 6, 2012 under Real Estate Law, West Virginia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you signed a purchase agreement, you are obligated as per the terms of that agreement, which, after all, is a contract. Whether or not you have applied for a loan, can get a loan, have the money, etc. doesn't matter; once you sign a purchase agreement, you are held to its terms. You can only get out of the agreement if the agreement itself allows you to--e.g. gives you some right to cancel.
If you back out of the deal, you will almost certainly lose the deposit; depending on the terms of the agreement and the circumstances, you may suffer additional liability.
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