The Louisiana Purchase Contract has provisions address circumstances that allow a Buyer to withdraw from a contract. If a Buyer attempts to back out for reasons not specifically addressed in the contract or timely lack thereof, consequences may apply.
Every once and awhile a Buyer who is “under contract” to purchase a home will want to ‘back out’ or ask to be released from their Purchase Contract This can occur for several reasons:
- Inability to Obtain Financing
- Inspection Reports
- Appraisal Issues
If the Buyer chooses to withdraw after the inspection period, and there is no financial or appraisal factor, the Buyer will not only forfeit their escrow deposit but they also risk being in Default as the Buyer.
Inman News recently had an article entitled 3 must knows when backing out of a purchase contract which outlines the basics buyers can expect if they choose to back out.
Buyers have two purchase options: FINANCE or CASH. When obtaining financing the Buyer’s loan officer or financial institution will provide the Buyer with a Pre-Approval letter. If financing is involved an appraisal will be required and the Buyer must wait until underwriters issue final loan approval. If the Buyer is paying CASH a “Proof of Funds” letter may be issued by the Bank.
Before signing a contract, it is important that a Buyer understand FULLY all the conditions of the purchase. Choose a REALTOR who can fully explain your contract obligations. Before executing a purchase agreement, make sure you understand your contract and the time frame for inspections.
Here are five top posts that Buyers may find help in understanding the real estate transaction process. These topics can be viewed on the Lake Charles Real Estate and Homes for Sale website.
Marilyn Boudreaux is a Full Time Licensed REALTOR in the State of Louisiana affiliated with Century 21 Mike D. Bono & Co.’s.
Copyright 2012© Marilyn Boudreaux
Marilyn Boudreaux, REALTOR® 337-499-9592
Century 21 Mike D. Bono & Co.’s
4410 Nelson Road
Lake Charles, LA USA 70605