-- Answers to Questions About Real Estate Law
Money and real estate news you can use everyday

Real Estate Lawyer
Question of the Week
Tip of the Week
Recommended Books
Contact Sam

Cancel Real Estate Contract

Ask the Real Estate Lawyer: Real Estate Law Q&A

REM #LAW 660

By Ilyce R. Glink and Samuel J. Tamkin

Summary: Can I cancel a real estate contract? That's the question asked by a reader that wants to walk away from a real estate deal because there are too many issues with the house, builder, and real estate agent.

Q: We agreed to purchase a home under construction. We have had no say into what the builder is putting into the home. Our financing is in place. We signed a contract for the purchase and delivered $1,000 earnest money. The closing is in about a month.
(article continues below useful links)

The problem is that there are too many issues with the house, builder, and real estate agent that we cannot seem to resolve. In fact, there are too many problems to list. Can we cancel the contract?

A: In general, you can’t just terminate a contract. There must be some reason for the termination, and that justification must have some basis under the purchase contract or under a statute in the state in which you are located.

You need to review the contract and determine whether the builder is in violation of the terms of the contract. You may also find out if all of the “problems” with the house would prevent the local municipality from issuing its certificate of occupancy. Certainly, if the builder can’t get a certificate of occupancy due to construction problems, you should not have to close on the purchase of the home.

If you believe that there a problems with the actual construction of the home, you may wish to discuss these with a professional home inspector to determine if these problems are major or minor.

If you discover that the home has major construction or structural issues, you can always try to contract the local building department to determine if they have inspected the home and if they have cited the builder on these issues. If they have cited the builder, the builder should correct these issues prior to your closing.

You should consult with a real estate attorney, who can look over the document you signed, about other options you may have.

Samuel J. Tamkin is a Chicago-based real estate attorney. Ilyce R. Glink’s latest book is 50 Simple Steps You Can Take To Sell Your Home Faster and For More Money In Any Market. If you have questions for them, write: Real Estate Matters Syndicate, PO Box 366, Glencoe, IL 60022 or contact them through Ilyce’s website




RSS Feeds

RSS 0.91 Feed
RSS 1.0 Feed
RSS 2.0 Feed

Home Buying   Using Attorneys to Buy a Home - Earnest Money - Quitclaim Deeds - Easements - Seller Misreprensation - New Construction - Buying with Partners - Home Inspections - Seller Problems - Agent Issues
Home Selling    Using Attorneys to Sell a Home - Seller Disclosure laws - Title Problems - Buyer Problems - Real Estate Agent Issues - Tax Considerations
Home Ownership   Neighbor Problems - Seller Misrepresentation And Fraud Issues - Problems In a Condominium Development - Problems Around The House - New Construction Issues - Subdividing Land
Home Renovation   Architect Issues - Contractor Issues - Problems With Contractors - Inspection Issues - Certificate Of Occupancy - Municipal Inspections - Punch List Issues - Financing Issues - Installment Contracts
Real Estate  
Loan Application Problems - Refinancing Issues - Paying Off An Old Loan - Credit Problems - Seller Recommended Lender - Prepaying A Loan - Prepayment Penalties - Predatory Lenders
1031 Exchanges - Financing Investment Properties - Landlord and Tenant Issues - Partnership and Company Considerations - Tax Considerations - Subdividing Land
Contact Us | Sitemap | Terms of Use | Copyright ©2001-2005. ThinkGlink Inc. All rights reserved.
Reproduction of material from any pages without written permission is strictly prohibited.
Site design by Walker Sands Communications