How to get out of a purchase and sale agreement?
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How to get out of a purchase and sale agreement?
I’m under contract to purchase 1 acre of land. A land title survey has been completed and 2 of the corner pins are out of position by 7″ – 1 pin is in my favor and 1 is in my neighbor’s favor (opposite directions). No encroachments. It’s my preference to opt out of (cancel) the contract. Can I object to the defect and back out of the contract without losing my earnest money? Do I have to give the seller the opportunity to correct the defect?
Asked on January 13, 2013 under Real Estate Law, Texas
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Whether or not you can cancel the purchase contract for the one (1) acre of land depends upon what the agreement states and if there are any contingencies that you have not waived such as inspection, survey or loan contingencies. As such you need to carefully read the purchase agreement to see if there is language allowing you to cancel the deal without any recourse to the seller where you get to keep your deposit.
Given the issues with the survey you may have a basis to cancel the escrow. I suggest that you discuss the issue with the seller and he or she may voluntarily allow you to cancel the escrow because of what you have written where you get the return of your earnest money.
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