Can I break the contract

Question

I went under contract for a condo in N. Myrtle Beach site unseen and in due diligence till 02/24th. I went to see the house over the weekend and the view is interrupted by the new built which was not in the listing. Agent says I can't back out just for this reason. I would like to know from the experienced or SC investors who knows this well. Agent who did a walkthrough did not note that when he visited.

Also I see this in the hard wood floors all over the living room. Can this be fixed without replacing the flooring?

John Underwood · Answer

If you are in your inspection window you can absolutely back out. That is the whole purpose of this contingency. Undisclosed blocked view is a huge deal.You don't have to provide a specific reason either.

Myrtle Mike Thompson · Answer

@Priya Srinivasan like John and Katie said, you can exercise your right to terminate the contract during the due diligence window for ANY reason. Your agent just needs to deliver a termination notice and a check for your termination fee to the listing agent/seller by 02/24. Reach out to your agent and ask them to do this immediately. This change to the SC purchase contract went into effect last summer and your agent should have received ample training on it from his/her broker... so the fact that they're telling you it's not possible to terminate the deal leads me to think they just don't want to lose the commission. (insert eye roll)

Katie Hole · Answer

Myrtle Beach Agent here. Since your DD is until 2/24, you can terminate the contract and pay the DD fee. Unless there is something else I am missing, you are able to. Not sure why the agent is saying otherwise. Let me know if I can help!

Andrew Steffens · Answer

In Florida, during the inspection period the buyer can back out for any reason. If you are in due diligence I would expect you can either find another reason or cancel for any reason until 2/24. This may vary in SC, you may consult a RE attorney if the earnest money is high enough to constitute that.

Zane Cress · Answer

If you are still in your DD period then you can leave the contract, the floors alone could be the reason. You can ask for a price reduction and if they say no then you're probably done and should move on to the next deal.

Patricia Steiner · Answer

Don't take the realtor's word for it...it may be the realtor who can't afford to let you back out. Check your contract under the cancellation and inspection clauses. Generally during the due diligence period, you can walk for any to no reason. And, unless your contract states you need to give a reason, I recommend not doing so and just stating that it did not meet your expectations. That avoids the 'great debate' and just ends the transaction. Be sure your realtor executes a Cancellation of Contract form and indicates the amount and full return of your escrow. The seller will need to sign it too before it gets sent to the escrow holder for processing. Whatever you do, do NOT wait until the last day to cancel if that's your intent. The sooner the better and the least said the best.Hope this helps...

Brooklyn McCarty · Answer

Unfortunately, this is part of buying site unseen and also why it is so important to have good agents.

Nathan Grabau · Answer

I would generally say that the view being interrupted by another row of houses is easy to find before going under contract and would not constitute due diligence. Is the agent that is telling you you can't back out also the listing agent, or do you have your own agent? It is very important that if it is the listing agent, you are selective with how you interact with them. In Colorado, someone who did not waive the inspection termination deadline would be allowed to terminate the contract over the flooring issue. We allow buyers to request that something is fixed or they can terminate the contract.

Jeff Copeland · Answer

Whether, when, and how you can cancel (and what the penalties are) will be dictated by the language in your contract. Find the paragraph about the inspection contingency and read it, or discuss it with your agent and/or an attorney. Worst case scenario is usually the forfeiture of your earnest money deposit. If they are legit hardwood floors, they probably can be refinished, up to a point. It's hard to tell from the photo, but it looks like there may be some buckling and warping from water damage (which is not uncommon near exterior doors) in addition to the scratches. This is much more difficult to fix than scratches. If they are laminate or some other product, then no. They would have to be replaced. A water resistant laminate plank, or high end LVP, might actually make more sense here if people are coming in from the beach/pool and wetting the floors on a daily basis.