Backing out of real estate purchase agreement?

Teddy B: Backing out of real estate purchase agreement?
I am a first time home buyer. I used a basic “Offer to Purchase Real Estate” form provided by my lender to counter offer on a sales agreement with a private seller. I filled it out and the seller signed. My loan is still processing and I may want to back out of the purchase. The earnest money was $ 1,000, but I still have the check with seller’s approval. I didn’t know that my offer should’ve had contingencies/clauses for cases like this and I shouldv’e had an attorney review it. My lender said that in the state of Oregon, I can back out for any reason until signing documents at the title company. I would like to know if this is really true? Can the seller come back to sue me for breach of contract if I back out?

Answers and Views:

Answer by Tsunami
he told you what you can do and do it. period i think they know what they are doing that is what you pay them for.

Answer by go_lc_bears
I doubt anyone would go through the hassle of suing you for breach of contract, since these things fall through all the time.. Unless they turned down another offer to go with yours. I would highly doubt that you’ll get your earnest money back though.

Answer by RedPersianKitty
You should have used a real estate agent or hired an attorney to begin with. Looks like you are better off going through with the purchase.

Answer by sandcatsle
You don’t need a lawyer, you need a good realtor. You can back out all the way up to closing, but without contingencies, etc., you will lose your earnest money.

1. Buying a house is a big commitment, you should have a realtor. If they have a realtor, you need one.
2. Grand scheme of things $ 1000 is not a lot. If you don’t feel comfortable with the deal, walk away.
3. When dealing with the seller, they may be motivated enough to sell the house that they would rather modify the agreement than see the deal fall through.
4. Always make things contingent on an inspection. Always have the home inspected. Once the inspection is complete, you start negotiating based on things that need to be repaired or updated, etc.

On Monday, get a realtor.

How do you choose a realtor. Ask them how many years they have been in the business. How many houses they typically close each month. Ask who the broker is. Ask what type of property they typically deal in. Ask people you know who they used, ask the person who works at the bank who they used.

Seriously, I know you are getting close to the end and you think you can save a few bucks by skipping the realtor, but truthfully if your house turns out to be a lemon, or you overpay, it will be because you did not have a realtor, and you will spend several times the cost of having one on things that never should have been problems.

Answer by Mst A
If you are first time buyer u have to research more and more resources which provide best mortgage refinancing loan i think online sources are best for you find the best online sources in search engine like google, yahoo with proper keyword i have found this source : https://www.refinancing101.net when i was buy my own house

Answer by estielmo
“My lender said…”

Haven’t you had enough second- and third-hand information? Get a lawyer.

Answer by lindaorion
As a practical matter how can anybody force you to buy a piece of property?

Answer by ☼AstrologerJuliAnne☼
Typically, you would need a contract with contingencies (home passing inspection, your financing being funded, etc) in order to back out and retain your earnest deposit. Without those, yes, if these people want to, they could sue you, and possibly win! It’s odd that you say YOU have the earnest check still? This deal is really weird..as the earnest check is typically held and cashed by an escrow company. This deal sounds like it has a lot of loose strings and wasn’t done really very carefully or with much consideration. If you want out of this deal, talk to the owners, perhaps they will just let it go, and when you make your next offer, use an atty or buyers agent and get everything in writing! As it stands now, they took their house off the market and were not able to sell it to anyone else because you *promised* (earnest) you would buy it. They are losing because you change your mind. That is why they would be entitled to your $ 1000.00. Hopefully, this will get resolved to your satisfaction as well as theirs, and you learned a lesson!