Backing out of a home purchase

acking out of a home purchase

Backing out of a home purchase in California is not so difficult as it is a very consumer friendly state for home buyers. One of the MOST important rights you have as a buyer is backing out of a home purchase!

Let's imagine you find a home that is perfect fit for you.  You come to an agreement on the price and terms with the seller and you agree to purchase the home.

The day the seller accepts your offer, he or she will want a deposit from you that shows in "good faith" your intentions to purchase the property. That deposit is typically 3% of the purchase price and must be deposited into escrow within 3 days of acceptance.

You now have some time to do your “due diligence” and you have 17 days for backing out of a home purchase, for any reason, and get that deposit back. *Note: this time frame can be negotiated down to fewer days by the buyer or seller, but 17days is the standard/default time frame.

So why would you want to back out of a home purchase?

• A home inspection shows multiple structural issues you are not prepared to deal with.
• Your loan is not approved.
• Personal hardship or job loss.
• Cold feet!

It doesn't matter why you choose  backing out of a home purchase, unless otherwise stated in the agreement; you have the right to walk away no questions asked.

Now, the only way you can lose that deposit is if you decide to back out after the17 days (or whatever time period is negotiated).  In my experience, 17 days is plenty of time to decide if you want to make this your new home.

If fear of making the wrong decision has kept you on the fence, then rest assured you have plenty of time to do your “due diligence” and make an intelligent home purchase you will not regret! Still have questions? Contact us at 323-216-9671 and we'll be happy to help!

Happy Home Hunting!