NOLA Home Buying Advice: How to Cancel Your Real Estate Contract

    Undo button

    “How can we cancel this purchase agreement?”

    Sometimes, things change that mean buying a New Orleans home is not the right thing for you to do right now.

    The good news is that there are several steps along the home buying process that allow buyers to cancel their contract with the seller.

    Inspections

    Not just limited to actual property inspections, your contracted inspection period (usually 10-15 days) is also your time to perform any due diligence you want. If anything doesn’t make you warm and fuzzy, you can cancel the contract with no penalty.

    Appraisal

    Every mortgage lender is going to require an appraisal of the property, to ensure that they are not lending more money than the collateral is worth. If the appraisal comes in lower than the contract price and the seller won’t agree to reduce the price to appraised value, you can cancel the contract with no penalty.

    Loan Approval

    If, after you’ve provided all information requested by your lender, you still can’t get a mortgage loan, you can cancel the contract with no penalty.

    Watch out for reasons to lose your deposit (and more)

    If you’ve been through inspections, the property has appraised at or above the contracted price, your loan is approved and you’re just changing your mind?

    You could not only lose your deposit, but also be liable for brokerage fees and seller damages as well.

    LA real estate purchase agreement - buyer default

     

    Be sure you know the terms of the Louisiana Purchase Agreement before you sign any offer.

    DOWNLOAD: Louisiana Real Estate Purchase Agreement

     

     

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