What Happens When You Back Out of a Real Estate Deal in New York?
Choosing the right home in New York can be difficult. This decision could impact your life for many years to come, and choosing a place to live is something that should not be rushed. With all that said, homebuyers are perfectly capable of making mistakes. If you have committed to the purchase of a property, you may be wondering whether you can legally “back out” of the deal. Perhaps you have had second thoughts about purchasing a home. Maybe you have discovered that the home in question has significant issues. Whatever the case may be, it is important to assess your legal options before moving forward.
If you are looking for sound advice on how to proceed, your best bet is to speak with a qualified, experienced attorney in New York. Ideally, you should book a consultation with an attorney who specializes in real estate litigation. These experts can help you explore all of your options and proceed in the best way possible.
Do You Have a Contingency?
The first thing you need to ask yourself is whether you have a contingency. For example, your contract might state that the sale is contingent on finances. If that is the case, you can simply state that you did not get the necessary funding, and you can legally back out of the deal based on your previously arranged contingency. This is why it is important to establish your contingencies clearly before proceeding with the sale. An experienced realtor or attorney can help you create these contingencies so that you have a “way out” of the deal if necessary.
Backing Out With No Contingency
The biggest consequence of backing out without a contingency is probably losing your deposit. This can represent a significant loss for many buyers. While it is technically possible for the seller to sue you for “specific performance” in an attempt to force the sale through, this is very rare. Courts tend to favor the buyers, allowing the sale to be closed without further consequences. You may be able to come to a more favorable legal outcome if the seller failed to disclose key information about the home, such as prior flood damage or major structural flaws. An attorney can help you hold sellers accountable for failing to disclose this information.
Real Estate Offers are Not Legally Binding in New York
Simply making an offer is not legally binding in New York. Whether you put your offer in writing or made the offer verbally, you will never be forced to actually follow through with the offer. If you make an offer and decide not to move forward, there is nothing the seller can do. However, things start to get complicated once you start to sign documents. After the sale is closed, it is difficult to back out.
Enlist the Help of a Qualified, Experienced Attorney Today
If you have been searching New York for an experienced, qualified attorney who can assist you with this matter, look no further than The Glassman Law Group. We specialize in real estate litigation, and we know how to help homebuyers who have legitimate questions about their contracts. Backing out of your real estate contract might be easier than you think. Reach out today, and we can develop an effective action plan together.