What happens when a buyer withdraws from a contingent home sale?

Answer by  patti (29325)

If, for example, the sale was contingent on the buyer securing financing, and the buyer is unable to do that, the sale contract is then void. Earnest money is returned and the house goes back on the market. If the buyer withdraws for no reason, s/he loses the earnest money, which is they disbursed per the details of the agreement.

Answer by  Jaggers (1018)

This very rarely happens. Contingent homes are such a desirable commodity that once a deal is made, it almost always settles. Sellers of course are quite happy with this situation. It gives them an opportunity to list the property again and see if they can improve on the selling price. It will probably give your agent an ulcer though.

Answer by  withluck (1745)

Assuming that the buyer has withdrawn because his house did not close first, and this was the contingency, then the sale is off.

Answer by  gin3733 (19)

That would depend on what is in the contract that they signed and you had with them. If you had them put up earnest money and you specified in the contract that if they back out or change their minds that the earnest money could be forfitted to you the seller.

Answer by  Schistosomiasis (61)

A buyer is allowed to withdraw from a sale at any time until the closing. However, the buyer is still responsible for fees relating to inspection that may have been incurred. The buyer should understand that withdrawing from a sale may cause the seller financial hardship and should consider the matter fully before placing an offer.

Answer by  bsample818 (35)

What happens if a buyer withdraws from a contract that was written contingent on the sale of his home depends on how the purhcase contract was written. If both buyer and seller fully executed a contract which agreed to this contingency, the contract would just simply be voided.