If I no longer want to purchase the house for which I signed a real estate contract because I have decided that it is going to cost me too much to make it safe and livable, what is the worst that can happen?

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If I no longer want to purchase the house for which I signed a real estate contract because I have decided that it is going to cost me too much to make it safe and livable, what is the worst that can happen?

Can I be sued for breaking the contract? I just do not feel good about this purchase anymore and realize though I have been approved for the loan that I cannot afford to make the mortgage payments.

Asked on October 6, 2015 under Real Estate Law, Utah

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Yes, you can be held liable for breaking the contract, because that is exactly what you would be doing breaking the contract. Your second thoughts, even if based on legimate concerns, are not a legal basis for escaping the contract. 
At a minimum, you could lose your deposit or earnest money--the buyer would not have to return it. He could likely also sue you for other amounts, such as his taxes, utilities, insurance, and mortgage for however many months he has to hold the property before selling it again, and for any lawyer, etc. fees he's incurred in trying to sell it to you.


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