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Wednesday, July 14, 2010

Real Estate Contract is legal, binding, can't just walk away!


You cannot just walk away from a legal bing real estate contract to buy a house. If you are a home buyer you should know that just "changing your mind" isn't an option. The seller of the house can sue you. There are legal ramifications that can happen to you. It is a serious thing you arent just buying a pair of shoes. Be prepared and educate yourself before the process so you know what you are doing and are comfortable doing so.
For more information on Wilmington, NC Real Estate and Wilmington, NC Luxury Homes visit my website at TheCarolinasFinest.com!Contact Jessica at 910-352-1043 or email JessicaEdwards@SeaCoastRealty.com.

2 comments:

Paul Strauss said...

Can't just walk away? As a buyer- sure you can. First of all most if not all contracts contain anywhere from a three to a five day "inspection period" and/or a period for "attorney review" of the contract-- if not longer and for other reasons by statute depending on the state.

However, there's still room to back out as a buyer. Legally binding contracts always contain remedies for breach of contract, and typically for real estate contracts, earnest money is regarded by both parties to the contract as liquidated damages in the event the buyer does not perform.

As a seller, you may not have the option of walking away.

The legal theory goes like this: for a seller of a home, if the buyer backs out-- there are other buyers out there. The earnest money is treated as liquidated damages (that's why more earnest money is considered a more 'serious' offer) and that's that.

As a buyer- if the seller backs out, there might only be ONE "dream home" for that buyer so that buyer might be able to enforce the contract with a bit more success.

The bottom line is that no court in the nation is going to "force" a buyer to perform.

Make enough crappy offers, and get a reputation for backing out of them-- that's another story. But legally, and especially as a buyer, you don't "have to" do anything. You just have to eat whatever you parted with in earnest money.

Gabe said...

Hi Jessica.
Thanks for continuing your video blog. They're fun and oh so right on the money. For those of you out there thinking of buying or selling you should really open your ears to what she has to say.

Take Care,

Gabe
gabehorton.blogspot.com