FOR BUYERS AND SELLERS, WHAT IS THE “POINT OF NO RETURN”?
Most buyers and sellers wrongly assume that when an offer is made on a home, there’s no turning back. But in fact, there are different “rules” that apply to both buyers and sellers: When a buyer makes an offer and the seller accepts, the buyer usually makes contingencies and conducts due diligence. If these contingencies aren’t met, the buyer can walk away from the contract with no legal or financial obligations. The most common contingencies are based on a title search and home inspections.
If those contingencies are met and the buyer still decides to back out of the sale, the seller has the right to take legal action against the buyer to recoup losses associated with breaking the contract, including agent’s fees.
If the seller is the one to change his or her mind at any time after signing the contract, the buyer can sue them, forcing them to uphold the agreement.
Understanding this “point of no return” can be tricky, which is why it’s essential to work with an experienced agent right from the beginning. An agent can make sure you understand your legal rights as well as your obligations to prevent you from making mistakes that could wind up being very costly.
