There are a variety of reasons someone might change their mind about buying or selling a home — changes in circumstances, new jobs, fluctuations in the market, issues arising from home surveys, or simply changing your mind. But how far along in the house sale process can you go, before it’s too late to go back?
Keep reading to find out everything you need to know if you are considering pulling out of a house sale.
The short answer is yes. You can pull out of a house purchase (with relative ease) up until contracts are exchanged.
The contracts are the conditions of the purchase and sale between both parties. Once contracts have been exchanged you’ll have entered into a legally binding agreement. You may still be able to pull out after the contract stage, but you’ll be subject to the requirements stated and risk potential court proceedings and significant financial loss.
If it has been accepted, you will still be able to withdraw your offer, as long as contracts have not been exchanged. In the UK, an accepted offer is not legally binding, it’s simply a verbal agreement between the buyer and seller.
It’s fairly easy to withdraw an offer you’ve made on a property, either before or after it has been accepted.
In order to withdraw an offer you have made on a house, simply:
Just follow these simple steps if you’re looking to pull out of the sale before the contract exchange:
It’s a straightforward process to be free of the sale, but it’s a different story if you wait until after contracts are exchanged.
You’ll be breaching the terms of the contract if you do not wish to proceed with the sale after exchange has happened.
If you are the seller and your potential buyer pulls out before the exchange of contracts:
If you are considering pulling out of a house sale, then do so before the exchange of contracts. Though it is inconvenient for the seller, you will have no legal obligation to owe them any money and it’s simple to withdraw when you are not legally bound by the contract. As covered above, you can pull out after the exchange occurs, but you will be liable for substantial financial damages and be breaking a legal agreement.
Always seek legal advice, but you should be able to sue for financial loss as well as any incurred fees, and potentially will be able to keep the buyers 10% deposit on the home. If a buyer pulls out of the house sale after the contracts have been agreed and exchanged, then you can take legal action as they will have broken the terms of the contract.
If you’re the seller you need to check the terms of your agreement with your estate agent and legal representative. If they have found a buyer who's willing and able to complete but you withdraw the property from sale, you might still have to pay their fee.
Whether you're the seller or the buyer, you'll also need to check the terms you’ve agreed with a conveyancer. For example, you could still be charged for the hours of work carried out by the conveyancers and solicitors even if the sale doesn’t complete, and you’ll pay any costs they have incurred so far such as covering the fees for local authority searches.
If you decide the property isn’t for you, after you make an offer, you can always withdraw your offer through your solicitor before contracts are exchanged. Contracts are usually exchanged around three months after offer acceptance so there is a window where you’ll be able to back out if needed.
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