As a buyer, what are your rights when it comes to buying a house? At first, it’s that exciting phase where you put in an offer and wait to be accepted but then, comes the sometimes awkward negotiation back and forth until both parties feel satisfied.
Understanding your rights as a buyer or a seller is important in a smooth real estate transaction. Here are some common things that buyers and sellers might assume they have rights to but need to know the legal implications behind it.
When can you back out of the deal?
If the inspection raised some issues and you don’t for comfortable buying the house once you know about all of the inspection issues, you can walk away from the deal and get your earnest money back.
Buyers can also walk away with the earnest money if the property appraises for less than your offer. Lenders will not let you borrow more than what the property is worth so you can either bring more cash to the closing table, what the seller lower the price or you can terminate the transaction altogether.
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There are lots of other details and stipulations that allow the buyer to back out of a real estate deal but it’s important to discuss these with your real estate agent. They may or may not be legal. There are certain situations where a buyer needs to forfeit the earnest money to the seller, especially if there are no legal allowances will be sending an offer.
But what about the seller?
What can the seller do if the buyer’s financing falls through? If a buyer cannot obtain financing before closing, the seller has the right to walk away. Even if the financing changes along the way causing a negative impact to the seller, the seller can void the contract.
If a seller accepts an offer and a higher offer comes in, the seller cannot simply choose that offer instead. The agent can save the offer as a back-up and the seller can look at other offers, just not accept one once there is a signed contract on the table.
Again, there are a lot of variables and details to seller and buyer rights and your agent should be able to answer any and all questions you have throughout the process. Give us a call if you’re unsure about your transaction or if you want expert care and knowledge on your next purchase and sale in Virginia, DC and Maryland.
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