What are consequences to buyer for terminating contract to buy home after the 10 day option period?
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What are consequences to buyer for terminating contract to buy home after the 10 day option period?
I am in Texas and entered into real estate contract that was
Asked on February 2, 2018 under Real Estate Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
If you "back out" of the contract after the option period to do so has passed, you will be in breach of the contract. That means:
1) The seller can keep your deposit;
2) The seller sue you for any other costs or losses the seller incurs which exceed the amount of the deposit. For example: say the deposit is $10,000. Say that it takes an additional 5 months to sell the home, during which time the seller incurs $3k/month in "carrying costs" for holding onto the home, or $15k; and that the seller had also incurred $3k in miscellaneous legal fees or other costs in trying to sell to you, so that the seller incurred a total of $18k in losses. In addition to keeping the $10k deposit, the seller could potentially sue you for the other $8k, too.
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