Skip to main content

How can a buyer back out of buying a home?

Brownsburg, IN |

My husband and I made an offer on a home and wrote a $4000 earnest check. Our offer was accepted. At inspection, our inspector found the roof to have hail damage and to be in "Poor" condition, requiring replacement. The sellers provided us with letters from their insurance company stating the roof had damage, but not enough to warrant replacement. We would like to cancel the sale of this home. Can we legally do that? What are the ramifications? Thank you!

Attorney Answers 3

Posted

Without seeing your contract, it is impossible to say what your rights and responsibilities are. However, typically, if you made a demand for a repair or replacement and the seller refused, you would then have the right to cancel the transaction - within the time mandated by the contract.

If this answer was helpful, please mark it as helpful or as a best answer. This answer is for general education purposes only. It neither creates an attorney-client relationship nor provides legal guidance or advice. The answer is based on the limited information provided and the answer might be different had additional information been provided. You should consult an attorney.

Mark as helpful

1 lawyer agrees

1 comment

Asker

Posted

Thank you!

Posted

Are you saying that you tendered the $4,000 and THEN you inspected the house?

Mark as helpful

1 lawyer agrees

2 comments

Asker

Posted

Yes, we gave $4000 (1% of the asking price of the house) earnest money on the home as part of our offer.

Vincent J. Gallo

Vincent J. Gallo

Posted

And did your contract contain a contingency that if your home inspection proved the premises to be inadequate that you had a right to cancel and get your deposit monies back?

Posted

What you describe is rather common and if the sellers do not agree to return the earnest money, you may have to initiate litigation. That's a pretty huge gap in opinion between "poor condition" needing replacement. Have you discussed this with your realtor? They should have experience in negotiating a back out on the agreement and getting some, if not all, of the earnest money back due to the material misrepresentation. You may have to find a lawyer to assist you.

Advice on this forum is for informational purposes only and should never be mistaken as a substitute for legal advice. If you are in need of legal advice, you should consult local legal counsel.

Mark as helpful

2 lawyers agree

Real estate topics

Top tips from attorneys

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics