Submitting an offer to buy a Virginia home is the first step in a process that may take several weeks or months to complete. After the offer is accepted, you will likely need to inspect the property, obtain a mortgage and attend a formal closing session. Depending on what happens during the closing process, there is a possibility that either you or the seller will back out of the deal.
Why would a buyer back out of a real estate transaction?
As a buyer, you are heavily reliant on the seller to provide accurate information about the condition of the home. If an inspection reveals issues that were not disclosed by the seller, you may have grounds to exit the deal without penalty. It’s also possible that your lender will renege on its promise to finance the purchase because of an unfavorable inspection or because the home is appraised for less than the agreed-upon sale price.
Why would a seller back out of a real estate transaction?
A seller may back out of a real estate transaction if you take too long to complete the closing process. The offer that you made will likely have contingencies that dictate how long you have to schedule an inspection, get a mortgage or complete other steps. There is also a chance that the current owner will terminate a deal because they have a change of heart before the real estate closing process is complete.
After the closing process is complete, you are generally responsible for any repairs or maintenance that the home needs. You are also responsible for making payments to your lender as stated in a mortgage contract. Therefore, it’s important to take time to review any documents associated with a home sale before signing them.