You fall in love with a real estate property, make a hasty offer to the seller and things are progressing well when you find out the neighborhood is not safe and the house has one or two costly renovation problems. Should you back out of the real estate contract by Professional Lawyers in North Vancouver you have already signed? Can you?
It’s important to know what your legal rights and obligations are in the event of backing out of a real estate deal. Here are a few frequently asked questions and their answers:
- When can you break a real estate contract?
In general, you can still withdraw the offer you made if it is still within the first week before any subjects have been removed, or before the other party has formally accepted your offer. If the contract has been made already, it is still possible to get out of the deal in the event of disasters. Fires or floods that might have affected the real estate property can take a buyer out of the contract with no liability.
It also depends on what type of real estate you are buying. For instance, you still have 10 days to think of the finality of your offer when buying a condominium.
- What are my legal obligations when backing out of a deal?
If you are already bound through a contract, you can lose your deposit or down payment. The other party can also put you liable when they fail to find another buyer because you backed out of the deal or when their move to another house is delayed. While it is unlikely that you will have to pay the price of the house, the court can still stipulate a fee or a fine for the damaged you have inflicted to the other party, and you will more than likely have to forfeit that deposit to the other party.
It is ideal to hire a Lawyer
for real estate in North Vancouver such as Lakes Whyte LLP before pushing through with an offer. This is to make sure that the contract is well-written and that the house is really in the condition described by the sellers before sealing the deal.
