It is disheartening for a home seller to agree to sell you a home only for them to go back on their word, but it sometimes happens. Here are some of the reasons a home seller may back out of such a contract:
They Don't Want To Do the Repairs You Are Demanding
It is typical for home buyers to request sellers to make improvements or repairs before closing the deal. In most cases, buyers wait until after the home inspection to identify areas that need improvements. This is all good provided that the repairs you are requesting are crucial and important. For example, it makes sense to request the seller to fix a leaking roof before you can close the contract. However, the more repairs you want the seller to make, the more they are likely to refuse your requests.
You Have Violated the Terms of the Contract
Just like other legal contracts, a purchase contract has terms and conditions that each party is expected to meet. For example, as a buyer, you may be expected to put down a certain amount of money as the earnest deposit or secure a mortgage within a specified period. Failure to adhere to these terms and conditions violates the contract, thereby giving the seller a way out of the deal.
They Have an Escape Clause
Just like home buyers, home sellers often have contingency clauses that must be met for the sale to happen. For example, a property owner may make a sale contingent on them finding another home they can buy or on the deal closing within a specific period. This gives the seller a way out of the deal if things don't go their way. For example, a seller may add a contingency to the effect that they can back out of the deal, without a penalty, if the contract isn't closed within three weeks. That way the seller can terminate the contract if something happens and the deal doesn't close within that timeline.
The Contract Is Still Under Attorney Review
When you sign a real estate contract, you get a grace period of a few days during which your attorney and the seller's attorney review the contract. During this time, either attorney can terminate the contract for any reason without incurring any penalty for their client. Contract termination during attorney review isn't very common, but it is possible so you should be aware of the possibility.
Involving a real estate agent from the beginning of the deal will help you weed out deals that are likely to fall through so that you can avoid the above scenarios. For more information, contact companies like Desert Sky Real Estate, LLC.