As your REALTORS, we are here to guide you through the complex buying process and help you understand all of your choices and options along the way. We will need to discuss your specific circumstances along the way. But in general, these are some of the common situations that could result in termination by the buyer.
*WARNING: all objections MUST be raised in a timely manner and some allow the seller the right to fix the issue.
The Most Common Ways “Out” of a Contract:
- Title Work / Title Policy
- The current seller doesn’t actually have the right to sell the property.
- Home Owners Association (HOA) (docs, rules, and regulations)
- Restrictions on certain pet breeds that are unacceptable to you as the buyer.
- Restrictions on exterior paint colors that may compel you to terminate the contract.
- Parking restrictions, which make the property unreasonable to you.
- Inspections can reveal cosmetic or even safety issues that were unseen at the time of the original viewing.
- Inspections can reveal major or minor home condition issues, which may be unacceptable to you as the buyer.
- Property Insurance Objection
- You may not be able to get insurance for the property in some cases. For example, properties located on a flood plain can be difficult to insure. These issues are often not determined until this period in the contract.
- A neighbor’s fence could be on your property or your shed or garage may encroach on theirs.
- The home may not appraise for the purchase price agreed upon.
- Loan Conditions
- The property may not qualify for the loan.
- The buyer may not qualify for the loan.
- Other circumstances may have changed for the buyer, like a job loss or increase in interest rates prior to the buyer’s lock-in period. See more info under the Financing tab.
Reasons that May Result in “Lost Earnest Money” for Invalid Termination:
- “I found a better deal after signing the contract for this house.”
- “I purchased a new car and now I don’t qualify for the loan.”
- “I changed my mind about buying THIS house in this area.”
- “I don’t like the paint color (after signing the contract already).”