How do you back out of a deal?

[Michael King]

Good morning everyone,

    I have two contracts that I've had approved by an attorney; an Offer to Purchase (with a section for subject to financing) and a Lease Option. Both forms contain exit clauses. The Offer to Purchase contains a clause stating that the deal is contingent upon finding a qualified resident to occupy the property, and subject to "someone's" approval (i.e., my partner, my fiance). The Lease option contains the same clauses.

    My question is, how would you actually back out of a deal after you've done your due-diligence and discovered the deal wasn't good enough? Do you write a letter to the owner stating "Hi Mr. Seller, my partner didn't approve the deal", or "Hi Mrs. Seller, unfortunately I was unable to find a qualified resident to occupy the property."

    Thanks!

                  Mike

[Roland Paicely]

There are a lot of ways to get out of a deal.  However, the first thing that I'd do is talk to the seller about the situation.  If the numbers aren't good enough let him know.  Remember if you are dealing with a motivated seller they can still be flexible enough to make the deal happen.  It's nice to have escape clauses.  But also focus on how to make the deal work!