One thing that does happen in the Real Estate world, especially in Orange County, is when a buyer decides to walk away from a home or back out just before closing.
Although the buyer thinks that they can easily walk away from the home that they intended to buy, they can walk away from the home but, it’s not always as easy as they think.
What’s Really Involved With Buying A Home?
When a home buyer wants to purchase a home, they must first release all contingencies from the contract including: releasing the loan contingency, inspection contingencies and contingencies to sell if the buyer has to sell the home that they are currently living in before, they can buy another home.
How Long Do Buyers Really Have To Close?
Buyers typically have 17 days to release contingencies, and if the buyer fails to perform, the seller can deliver a Request for the Buyer To Perform. This a window that ranges from one to three days (24 to 72 hours), and if the buyer doesn’t release the contingencies within this timeframe, the seller can cancel the contract.
If the buyer doesn’t release the contingencies, they can walk away from buying the home but they will risk potentially forfeiting their deposit that could range from $1,000 or more depending on the value of the home.
What Happens When The Buyer And Seller Can’t Agree On Deposit Money?
Depending on the value of the home, there may be some cases where the buyer and seller can’t agree on the disposition of the deposit (earnest money); when these cases occur the buyer and seller are encouraged to consult with their Real Estate Attorneys to either go to arbitration or file a lawsuit.
To learn more about what’s involved with walking away from a home or to view the latest Orange County homes for sale, contact Fred Sed & Associates today by calling (949) 272-0125.