Can I back out of a real estate contract?
Darice Veiga's Answer
Quick Answer
In Massachusetts, a buyer can typically back out of a real estate contract without penalty if a contractual contingency exists; otherwise, they may face loss of the deposit and other liabilities.
Key risks of waiting too long
Potential Risk
Sellers may be unable to back out unless the buyer defaults or the contract allows it.
Potential Risk
Failure to understand contract terms could lead to disputes.
Potential Risk
Potential loss of deposit for buyers if they back out without valid contingencies.
Potential Risk
Buyers can face additional liabilities for contract breach.
Full Transcript
Below is an AI-generated transcript of the video answer.
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.