What are consequences to buyer for terminating contract to buy home after the 10 day option period?

Get Legal Help Today

 Secured with SHA-256 Encryption

What are consequences to buyer for terminating contract to buy home after the 10 day option period?

I am in Texas and entered into real estate contract that was

Asked on February 2, 2018 under Real Estate Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

If you "back out" of the contract after the option period to do so has passed, you will be in breach of the contract. That means:
1) The seller can keep your deposit;
2) The seller sue you for any other costs or losses the seller incurs which exceed the amount of the deposit. For example: say the deposit is $10,000. Say that it takes an additional 5 months to sell the home, during which time the seller incurs $3k/month in "carrying costs" for holding onto the home, or $15k; and that the seller had also incurred $3k in miscellaneous legal fees or other costs in trying to sell to you, so that the seller incurred a total of $18k in losses. In addition to keeping the $10k deposit, the seller could potentially sue you for the other $8k, too.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption