What do I look for in the buyer’s agreement in order to cancel if I cannot afford the payments to the house I am buying?
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What do I look for in the buyer’s agreement in order to cancel if I cannot afford the payments to the house I am buying?
I want to back out of buying a house before closing.
Asked on August 8, 2017 under Real Estate Law, Iowa
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
You can only get out of the agreement if:
1) There is some clause, term, or provision which allows you to get out of the agreement now, under these circumstances, and you fully comply with it. (E.g. if there was a mortgage contingency allowing you out if you can't get a mortgage, you have not been able to get one, and you are still within time to exercise that contingency.)
2) The other side (the seller) breached or violated their obligations in some material way, such as by not being able to transfer good title or close when they were supposed to.
3) The seller committed fraud--e.g. you found out that he lied about whether the basement frequently or regularly floods.
Other than as the above, however, you are obligated to the contract, een if you cannot longer afford the payments; your personal financial situation does not provide a legal basis to escape a contract.
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