Under contract - is it too late to cancel?

Question

I've been under contract for 3 months. After months of waiting, the seller finally was able to finish taking out an oil tank and get state regulatory approval. Since then my rates have gone up and the deal isn't as attractive. Is it too late to cancel the deal? My agent and lawyer and loan officer obviously are pushing to close fast.

Trenton Lukenbill · Answer

Hello! I'm a licensed Realtor in the state of Missouri. Although some specifics can vary state to state, in most cases, you can legally back out of a contract. However, you are going to forfeit any Earnest money you have deposited onto the home(more than likely anyways, it depends on the fine specifics of your contract on the offer letter). Also, any sort of inspections, appraisals, and paperwork fees are not going to be refunded to you.

My advice is to read thoroughly through your contract and take notes of the contingencies and see if there are any specifics in which you can leverage yourself out of the contract, legally of course. I also suggested you be honest with your agent. It may be a scary, and frustrating process for you both, but please don't be peer pressured into a major life decision if you are not comfortable.

Best regards.

Kai Kopsch · Answer

Simple decision: Do you lose more money on this transaction buying the property than what it cost you to terminate this deal? Earnest money, inspections and potential losses of the seller?

Chris Battaglia · Answer

Are there other factors outside of the rate increase that have you wanting to cancel the contract? Seems like the rates wouldn't have changed enough in that timeframe to significantly impact your numbers, but I don't know any specifics of the deal. You've got something you were once interested in under contract and now you'd have to start over, so if there's any way to salvage it/make it make sense that's what I'd be trying to do.

Brandon Becsi · Answer

Another option may be to tell them what you just said and that their 3 month delay has cost you a lot in rates and that they need to take off $ to make the deal fit your numbers so you can close...

Allan Wu · Answer

my lender is willing to eat some of the fees to keep my rate. So i think i'm whole for now. thanks everyone for your help!

Bruce Woodruff · Answer

What does your Contract say? That's all that's important. Was there a contingency period?

Paul De Luca · Answer

You should ask your attorney. But when you say the deal isn't as attractive, how much of a difference in the numbers are you talking about?

Under contract - is it too late to cancel?

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