Worst scenario of backing out an accepted offer

[Terry Z.]

So I have a house under contract and I am the buyer. Due to ongoing virus situation, I want to back out from the sale so that I don't over leverage and have more cash reserve in case anything happens. However, the process has passed the inspection stage and just waiting for loan to approve and it will approve eventually.

If I insist back out and seller sue me over that, how bad it will get to? I am trying to see the worst scenario. There is no earnest money in the contract.

[Andrew B.]

@Terry Z. Worst case scenario is usually you lose the deposit. He can technically sue you for specific performance, but that’s such a long, expensive process it’s basically not happening. I believe the morning boy thing he could sue for in your situation would be the difference between your contract price and the new contract price if it sells for less, as those could be considered damages due to you backing out. Of course, I’m not an attorney and this shouldn’t be considered legal advice.

On the other hand, you have a contract...follow through man. That’s not cool.