Kelly Broaddus | eXp Realty | 888.446.5602 | Contact Kelly
Here are three ways you can get out of a bad real estate contract.
Are you in a contract, but you want to get out? How can you do it? You’ll need a skilled Realtor, but I’ve come up with three strategies you can use to get out of a rotten contract:
1. Cancel during the due diligence period. When you sign a contract, you have an allotted amount of time for appraisals and inspections called the due diligence period. During this time, you can cancel for basically any reason; however, you have to have a reason. Good Realtors have contacts that can help you finish your appraisal and inspection as fast as possible. This way, you can know what you’re getting into before you decide to cancel or not.
2. Cancel within five days of receiving your CC&Rs. You’ll receive a notice of your covenants, conditions, and restrictions from your title company in your email. Your title company will be watching closely to see if you have any issues with your CC&Rs, and if you do, a good Realtor can help you get out of your contract.
"Good Realtors have contacts that can help you finish your appraisal and inspection as fast as possible."
3. Cancel because of an unfulfilled loan contingency. If your loan is denied for any reason up until the day you close, your seller cannot receive your earnest money.
Unfortunately, getting a bad vibe or cold feet is usually not enough to cancel a contract. The good news is that they can only get your earnest money; they can’t force you to buy their home. The key takeaway is to strategize with your Realtor to make sure you don’t lose your outs if things go wrong.
This is a complicated topic, so if you have any questions, please call or email me. I am always willing to help!