The Circumstances That Allow You to Void a Real Estate Agreement in Texas
The purchase of real property is, for most persons, the largest financial transaction of their lives. There can be a lot of excitement around the potential purchase of a home, but there can also be a few red flags.
What happens if you’ve signed a buy-sell agreement, but you have second thoughts or feel like you need to back out of the deal? For that matter, what happens if you sign a real estate contract, but can’t get a mortgage or can’t sell your existing home? When can you terminate a real estate contract in Texas? If so, under what circumstances?
As a matter of law, a real estate agreement is a binding contract, which can be enforced in a court of law. Typically, though, the agreement will identify those circumstances where the parties may terminate the agreement. Examples include:
- A standard three-day cancellation clause—Many real estate contracts give either party to the right to terminate for any reason within 72 hours of signing the contract.
- Denial of financing—As a general rule, real estate agreements are contingent upon the buyer obtaining financing. These clauses typically include some type of time frame, requiring the buyer to obtain financing within a certain period of time.
- Problems selling another property—Often, the party buying a home currently has a mortgage on another home and will make the finalization of the deal contingent upon selling that property. Such a clause will customarily have a date by which the other home must be sold.
- The property fails an inspection—The seller will usually have an opportunity to “cure” any defects. If that cannot be done, though, the buyer has the right to terminate.
- The seller fails to make agreed-upon improvements—The deal may be contingent upon certain repairs or other improvements being made to the property. If they are not completed by a certain date, the buyer can cancel the deal.
- The seller cannot deliver clear title—If the title search reveals liens, claims, or encumbrances previously undisclosed, or if there are easements or other title issues that have not been previously reported, the buyer may back out.
At the law office of Bailey & Galyen, we have a comprehensive knowledge and understanding of the laws governing real estate transactions in Texas, and we can protect your rights in any type of real estate controversy.
We offer a free initial consultation to every client. To speak with a proven Texas real estate attorney, Contact us by email or call 844-402-2992. You also can call our offices at one of the convenient locations listed below. We will take your call 24 hours a day, seven days a week.
