In short, No. Once a purchase offer has been accepted, after any conditions have been fulfilled,both the buyer and the seller are legally bound by its terms. If you do decide to walk away from a deal any time after if is firm, you’ll not only lose your deposit, but you may also be liable for any damages suffered by the seller, such as a lost opportunity to sell to someone else, expenses arising from a delayed move, or the seller’s loss of deposit on another home intended for purchase.
It is important to understand the affect of backing out of a purchase offer and how it impacts the buyer and the seller. The sale of the house is normally linked to successful sales of multiple properties, as well as their closing dates.
The home inspection and financing components are normally written into the purchase offer as conditions. This then grants the buyer a specific amount of time (traditionally five business days)to secure financing and/or make sure the home is in satisfactory condition. If you can’t get a mortgage you most likely would not be able to purchase the property.
Buyers and sellers may also negotiate any major issues that may arise during the inspection or because of it. Examples would be mold in the attic or moisture detected behind walls.
Lenders will normally take the five business days to review the buyers financial position and the ability to afford the home at the offered price. The lender will also appraised the home’s value as they normally won’t finance above the home’s appraised value.
