If you decide to buy a property but change your mind after signing a Purchase Agreement, you may be out some cash unless the contract expressly gives you the right to get out of the deal.
A seller typically has three remedies:
- Accept the deposit and terminate the contract;
- Sell the property to someone else and sue the buyer for any loss, or
- Sue the buyer to make the buyer to go through with the purchase.
However, as the buyer, you may have a right to terminate the contract without penalty. For example, if the contract is subject to financing or inspections, or if you did not get the Seller’s Disclosure Statement or Lead-based Paint Disclosure when required, you may have the right to terminate the contract and even get your deposit back.
Contracts create serious obligations. You should not enter into one lightly.
If you do need to get out of one, it is important to consult an attorney versed in real property law so you understand your rights and obligations.