In Minnesota, you can be sued to perform (i would expect the same in all other states). it almost never happens, but filing suit is pretty easy and if you can negotaite with the other party for a cancellation, I would expect you to be better off in the end.
Well, first you don't pay until you actually close the deal, so what you're asking is if you offer too much would you be legally liable.
The simple answer is yes, you would. You signed an agreement and are legally responsible to uphold your end of the deal. However, most sellers wouldn't make the effort to try to make you buy the property. In fact, in most standard real estate contracts, there is a clause that says something to the effect that the remedy for the buyer cancelling the deal is the loss of the escrow deposit. In almost all cases, that is the only thing that will happen if you back out of a deal.
Much more important than the legal troubles with cancelling an offer is the ramifications that it will have to your creditability. Agents will quickly stop working with someone who makes, and then cancels deals. It won't take more than one or two "cold feet" cancellations before it will be very difficult for you to find an agent to work with.
Not an attorney - just RE agent. I agree, not much to address with the limited info. Some basic items: An offer is revokable (able to be pulled back) up to the point in which it is accepted. (Contractual Law) If you offered to much, or change your mind, call your agent and instruct them that you are hereby withdrawing the offer. If the offer has not been accepted (signed) you are off the hook. Other items, if the offer is contingent, try to use one to get out of the deal. Here in WA state, we have inspection , neighborhood approvals, financing, etc. contingencies. Work with your RE agent and have them make the offers and paperwork fit your needs and requirements.
Is this just "A what if" question or do you have a specific situation that needs fixing?
If it is just "a what if", there are too many variables to answer the questions. But the bottom line is if you go through an agent, there would be one or more clauses you could use to get out of the deal.
In Minnesota, you can be sued to perform (i would expect the same in all other states). it almost never happens, but filing suit is pretty easy and if you can negotaite with the other party for a cancellation, I would expect you to be better off in the end.
Well, first you don't pay until you actually close the deal, so what you're asking is if you offer too much would you be legally liable.
The simple answer is yes, you would. You signed an agreement and are legally responsible to uphold your end of the deal. However, most sellers wouldn't make the effort to try to make you buy the property. In fact, in most standard real estate contracts, there is a clause that says something to the effect that the remedy for the buyer cancelling the deal is the loss of the escrow deposit. In almost all cases, that is the only thing that will happen if you back out of a deal.
Much more important than the legal troubles with cancelling an offer is the ramifications that it will have to your creditability. Agents will quickly stop working with someone who makes, and then cancels deals. It won't take more than one or two "cold feet" cancellations before it will be very difficult for you to find an agent to work with.
Roger
Hey Murphy,
To be honest, you have not provided enough information for anyone to answer this question.
Why do you say "I paid too much..."? Did you get an appraisal and it is lower than the offer price?
What does your contract have in it as far as clauses? Most standard RE contracts have an appraisal clauses.
Is it "too much" because you can't get financing?
Are you using an agent?
Not an attorney - just RE agent. I agree, not much to address with the limited info. Some basic items: An offer is revokable (able to be pulled back) up to the point in which it is accepted. (Contractual Law) If you offered to much, or change your mind, call your agent and instruct them that you are hereby withdrawing the offer. If the offer has not been accepted (signed) you are off the hook. Other items, if the offer is contingent, try to use one to get out of the deal. Here in WA state, we have inspection , neighborhood approvals, financing, etc. contingencies. Work with your RE agent and have them make the offers and paperwork fit your needs and requirements.
Hi Murphy,
Is this just "A what if" question or do you have a specific situation that needs fixing?
If it is just "a what if", there are too many variables to answer the questions. But the bottom line is if you go through an agent, there would be one or more clauses you could use to get out of the deal.