How can I cancel my offer on a house due to Covid 19? some advice
Hoping this week’s post finds you and your family well. I’ve been asked numerous times this week about whether you can cancel an accepted offer on a home. Here’s some facts to consider.
You are two steps away from getting a house that you like a lot, but suddenly, with this Covid 19 pandemic, you start to doubt your decision. But, is there a way to back down?
“People think they are just making a simple offer, but they need to be careful since those offers have legal impacts,” explains Kenny Langburt of ReMax Ambiance. Once an offer is made to the seller, and accepted, the “offer” becomes a contract promise for the buyer and they must respect their obligations.
He underlines that there are circumstances where the purchase offer can be cancelled without complications.
“You cannot get out of an offer for “subjective factors” like Covid 19, only for “objective factors”.
For example, some people can indicate that their offer is contingent on getting a mortgage loan and the buyer loses his job and no longer qualifies for the mortgage – that’s an “objective reason”. “If the buyer can prove that any of these conditions have not been met, then the offer no longer stands,” says Kenny Langburt.
But what if the buyer changes his mind without a valid or only a subjective reason? It is still possible to get out of the deal unscathed.
If the buyer withdraws his offer without justification once it has been accepted by the seller, he risks being sued by the latter for damages since the seller has probably rejected other offers and lost a lot of time in thinking that his property was already sold. Something to keep in mind!
If a buyer wants to get out for subjective reasons, I suggest they ask their broker to call and explain the situation to the seller, and ask the seller to cancel or delay the offer to purchase and signing of the deed of sale. “Of course I always suggest to call a lawyer for legal advice before making any unilateral decisions that may have legal ramifications”.
In short, purchase offers are not to be taken lightly!
If you need a hand navigating through this crazy time, feel free to reach out to me at email@example.com and in setting aside some time to talk.
Stay healthy. Stay safe.