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SmilingInside · Feb 16, 2013, 11:14 AM

I put in an offer on real estate, seller accepted, but I may have changed my mind. I'm pretty sure I don't want this place anymore.

It's under contract, sale pending. The only 'contract' is the offer paperwork I signed. If you need more details about anything please ask and be specific about what you need to know.

Can I back out? If so, what do I stand to lose?

AK lawyer · Feb 16, 2013, 11:19 AM

You made an offer. Seller accepted. That makes a contract.

If you seek to avoid the contract, seller can sue you and recover the difference between the price you agreed to pay and the next offer (if less). Plus interest, costs, attorney's fees if provided for by contract or otherwise allowed in your state, etc.

LisaB4657 · Feb 16, 2013, 11:22 AM

Were there any realtors involved on either side? Or attorneys? How many days has it been since you or your agent received the contract signed by the seller? Were any changes made to the contract by the seller? Are there any conditions in the contract that need to be fulfilled by either side?

SmilingInside · Feb 16, 2013, 11:25 AM

Originally Posted by AK lawyer

You made an offer. Seller accepted. That makes a contract.

If you seek to avoid the contract, seller can sue you and recover the difference between the price you agreed to pay and the next offer (if less). Plus interest, costs, attorney's fees if provided for by contract or otherwise allowed in your state, etc.

OK, OK, I was just letting you know the only contract was the offer and nothing beyond that. It hadn't progressed any further yet.

I put a deposit on it which is held in an account with the realtor. Will I get that back right away if I withdraw my offer?

The realtor is agent for both seller and buyer so I just want to ask someone besides her so I'm sure I'm getting an uninterested party's opinion on things. What steps do I take to get out of this?

AK lawyer · Feb 16, 2013, 11:30 AM

You said that the seller accepted your offer. Does the realtor have that in writing?

Ask the realtor what you can do. As you suspect, she is likely to also indicate you are stuck. Generally, earnest money deposits are non-refundable should the buyer decide to back out. What, if anything, does your written offer say about the deposit?

LisaB4657 · Feb 16, 2013, 11:31 AM

You hand a written notice to the realtor that you are withdrawing your offer effective immediately and requesting the return of your deposit. Make sure you keep a copy of the written notice and make a note on your copy of the date you handed it to them.

LisaB4657 · Feb 16, 2013, 11:35 AM

Originally Posted by AK lawyer

Ask the realtor what you can do. As you suspect, she is likely to also indicate you are stuck. Generally, earnest money deposits are non-refundable should the buyer decide to back out. What, if anything, does your written offer say about the deposit?

This is incorrect. Unless otherwise designated in the contract (which is rare), the deposit is completely refundable if the buyer backs out within the attorney review period, or in the event either party is unable to fulfill any conditions of the contract.

SmilingInside · Feb 16, 2013, 11:53 AM

Originally Posted by AK lawyer

You said that the seller accepted your offer. Does the realtor have that in writing?

Ask the realtor what you can do. As you suspect, she is likely to also indicate you are stuck. Generally, earnest money deposits are non-refundable should the buyer decide to back out. What, if anything, does your written offer say about the deposit?

Well it says seller can retain deposit if buyer fails to perform under buyer's obligations under this contract. So I'm probably out of luck unless there's some way to back out legally. What are some ways that I can get out of it? One concern is that there's an issue with the deed and I also wasn't given time to get an inspection.

SmilingInside · Feb 16, 2013, 11:55 AM

Originally Posted by LisaB4657

This is incorrect. Unless otherwise designated in the contract (which is rare), the deposit is completely refundable if the buyer backs out within the attorney review period, or in the event either party is unable to fulfill any conditions of the contract.

I hope this is true, I was really under pressure to make an offer (I was competing with another buyer, supposedly) and I feel like I got railroaded. This happened in like 2 days, I had no lawyer and no time to even think clearly. I NEED a way out of this!

LisaB4657 · Feb 16, 2013, 11:59 AM

You haven't answered any of the questions I asked you. If you answer them I can give you a better answer on your situation.

Has the seller signed the contract yet? If so, how many days have passed since you received the fully signed agreement? Are there any conditions in the contract?

SmilingInside · Feb 16, 2013, 12:05 PM

Originally Posted by LisaB4657

You haven't answered any of the questions I asked you. If you answer them I can give you a better answer on your situation.

Has the seller signed the contract yet? If so, how many days have passed since you received the fully signed agreement? Are there any conditions in the contract?

The realtor said the seller has signed the contract. I have not been provided with a copy of this as of yet. This is an inter-state sale, also this is a cash sale.

The offer was made on 2/7, we were informed by telephone it was accepted on 2/8. We were to send deposit, deposit was received 2/10, once it was received I guess the seller officially accepted offer and signed sometime after the deposit was received.

I am looking over the contract (my offer), there's a lot of N/A's drawn in, I'm trying to figure out what conditions there are. What types of things should I look for?

LisaB4657 · Feb 16, 2013, 12:15 PM

The contract should have a statement somewhere that you have the right to have the contract reviewed by an attorney within 3 days after receiving a fully signed copy. Bring your copy of the contract to an attorney first thing Monday morning and have them send a letter to the realtor that they have reviewed the contract, disapprove it and require the return of the deposit.

Another option is to call or email the realtor with the name and contact information for your attorney and ask the realtor to forward a copy of the fully signed contract, when it is received, for your attorney to review. Then contact your attorney and tell them that you want the contract cancelled and your deposit returned.

SmilingInside · Feb 16, 2013, 12:30 PM

Originally Posted by LisaB4657

The contract should have a statement somewhere that you have the right to have the contract reviewed by an attorney within 3 days after receiving a fully signed copy. Bring your copy of the contract to an attorney first thing Monday morning and have them send a letter to the realtor that they have reviewed the contract, disapprove it and require the return of the deposit.

Another option is to call or email the realtor with the name and contact information for your attorney and ask the realtor to forward a copy of the fully signed contract, when it is received, for your attorney to review. Then contact your attorney and tell them that you want the contract cancelled and your deposit returned.

There's nothing said about having it reviewed by an attorney. I will do as you suggest and see an attorney first thing next week. Thanks for your help!

LisaB4657 · Feb 16, 2013, 12:32 PM

A contract prepared by a realtor is required to have a clause giving the parties a 3 day right of attorney review. Look through it very carefully and yes, speak to an attorney asap.

AK lawyer · Feb 16, 2013, 12:44 PM

Originally Posted by LisaB4657

This is incorrect. Unless otherwise designated in the contract (which is rare), the deposit is completely refundable if the buyer backs out within the attorney review period, or in the event either party is unable to fulfill any conditions of the contract.

An "attorney revew period" is not set forth by statute in every state, or contained in the Common Law. And OP didn't indicate an inability to perform.

Originally Posted by LisaB4657

A contract prepared by a realtor is required to have a clause giving the parties a 3 day right of attorney review. Look through it very carefully and yes, speak to an attorney asap.

Lisa, it appears that you are assuming the law in your jurisdiction also applies wherever OP is. I don't know that your assumption is correct.

LisaB4657 · Feb 16, 2013, 12:53 PM

That's why I told the OP to carefully review the contract again AND speak to an attorney asap.

SmilingInside · Feb 16, 2013, 01:00 PM

Originally Posted by LisaB4657

A contract prepared by a realtor is required to have a clause giving the parties a 3 day right of attorney review. Look through it very carefully and yes, speak to an attorney asap.

I looked through the entire thing and it doesn't say anything like that anywhere. Thanks again for your help, I really appreciate it!

@AK lawyer: I live in NY and the property is in KY.

AK lawyer · Feb 16, 2013, 01:16 PM

And, of course, even if the realtor were required to put such a clause in the contract but tailed to do so, that's not the seller's problem.

I should add that a clause making it subject to review by an attorney doesn't mean that the buyer can get out of the contract for reasons unrelated to whatever problems an attorney might find.

LisaB4657 · Feb 16, 2013, 01:17 PM

KY does not require a 3 day right of rescission for real estate contracts. The right to withdraw the offer disappears as soon as the seller has accepted the offer without any changes to the terms. At this point to get out of this contract there has to be some condition in the contract that hasn't been satisfied. You mentioned earlier that there is a deed issue. What is the issue?

AK lawyer · Feb 16, 2013, 01:25 PM

Originally Posted by LisaB4657

KY does not require a 3 day right of rescission for real estate contracts. ...

SmilingInside, does the contract have a "choice of law" clause? Something to the efect that it is to be governed by the law of wherever, New York, perhaps? If it does, is there perhaps a right of recission in New York, Lisa?