Real Estate Broker · Raleigh, NC · Member since 2017 · 174 posts · 69 votes
So I'm new to this real estate business and want to dive in and ready to learn. I have one question that I can't seem to find on Google: Once you bid on a property (through whichever local real estate agent you use), and the Seller agrees on the price- are you legally obligated to buy that property? How does this work? Once both parties mutually agrees on a price (and somehow you- the Buyer- change your mind) is there certain time restrictions on when/how you can back out? I know that once you get a home inspection done on the property and you find things that are broken, etc. you can back out of your offer but other than that you are legally bound to purchase? Someone explain this process? Thank you!
It depends on the contract. There is typically a 5-10 day contingency period that allows the buyer to back out for whatever reason. There can also be financing contingencies, inspection contingencies as well.
The contract is your offer. You decide what which contingency you want to put into place. Like an appraisal contingency, where if the property you are buying does not appraise for the purchase price then you are legally able to cancel the contract.