Can I back out of a real estate contract? - Answer by Darice Veiga
In Massachusetts, whether you can back out of a real estate contract depends on the terms of the agreement and the reason for terminating.
A buyer may be able to cancel without penalty if a contractual contingency applies, such as financing, inspection, title, or another agreed condition. If no contingency or termination right applies, backing out could result in loss of the deposit or other potential liability.
A seller generally has fewer rights to terminate once a binding contract is signed unless the agreement specifically allows it or the buyer defaults.
The exact rights of either party depend on the Purchase and Sale Agreement and any addenda or contingencies.