“How does it work if I’m buying a home but cancel because I find a problem with the home or my bank won’t give me the loan. Is that breaking the contract? And do I lose my deposit?”
***ANSWER:
Most contracts have contingencies letting you cancel and get your deposit back under certain conditions.
The 3 categories of standard contingencies are:
1. disclosure
2. inspection & investigation
3. finance
So if the seller discloses a problem, if your inspections are unsatisfactory to you, or if you don’t get your loan, you typically get your deposit back…PROVIDED you keep within the agreed deadlines.
Be sure your agent knows contracts and follows up on deadlines. Contracts and deadlines are common weaknesses for real estate agents, so be careful whom you work with.
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