Backing out of a contract as a buyer

[Bosko Mijatovic]

Hello I was wondering if I am legally allowed to back out of a contract at any given moment during escrow? We are set to close tomorrow but we never deposited our earnest because of lending issues even though there were no contingencies listed in the contract. We have notified the agent at least a week ago and he finally responded that if we don’t go through with closing they can sue us. Again I’m not sure how they are gonna sue when we don’t have funds to obtain the property.

[Jeff Greenberg]

@Bosko Mijatovic People can sue you for anything anytime.  The question is can they win the suit and how much will it cost you to defend yourself?  How much are they willing to spend suing you?  I have never seen a purchase and sale agreement that did not have some clauses stating what can happen in the case of buyer default.  They could sue you for the damages that they feel that your default has caused, but I would read over the contract to see what recourse they have.

I am not a lawyer, but if they do sue, you should seek the advice of one.