Boston condos for sale: Can a buyer back out of a deal once they submit an Offer?
When you make offer on a Boston condo for sale, you need to place a money deposits. An earnest money deposit demonstrates you’re committed to the purchase of a Boston condo for sale, and the money will go into an escrow account until closing.The last thing you want to do is lose your earnest money. However, the deposit is usually nonrefundable to prevent buyers from changing their minds in the middle of the transaction. Luckily, there are ways to get out of the purchase and keep your earnest money. Here’s what you should know about getting your earnest money deposit back if you change your mind.
Time Frame to Change Your Mind
In Massachusetts, a standard purchase contract includes a clause that allows the earnest money to be returned to buyers within a specific time frame. This clause allows you to change your mind, including cold feet about buying or finding another home you like more. When buying a Boston condo for sale make sure this clause is in the contract. You may not have this contingency in your purchase contract. In these cases, you’ll need a good reason to walk away from the transaction without forfeiting the money.
The Home Appraisal Was Too Low
One of the most straightforward ways to have your earnest money returned is through an appraisal contingency in the contract. Your lender will require that the property be appraised to make sure it’s worth at least as much as the purchase price. If the estimate is too low, you’ll be required to pay the difference. The appraisal contingency in your contract means you only need to buy the home at the appraised value, which gives you leverage to ask for a lower price or change your mind and leave the transaction with your earnest deposit.
The Home Has a Major Problem
Most Boston condos for sale are contingent on the results of a home inspection. You may change your mind about buying the home if the inspection turns up a mold problem, foundation issues,ect… In these cases, you can negotiate with the seller or walk away with your earnest money.
Your Other Home Hasn’t Sold
If you’re selling your Boston condo for sale & buying a new one simultaneously, you likely have a sale contingency. This states you’ll follow through on the purchase contract only if your home sells within a specific amount of time. With this contingency in place, you can change your mind about buying the new home if your current home fails to sell by the deadline, and you’ll keep your earnest deposit.
If you’re getting ready to shop for a Boston condos for sale, following these tips can ensure you don’t lose your earnest money. Experienced real estate agents who know the ins and outs of home financing can also help.For more information please call me at 617-595-3712.