Is It Possible To Cancel a Real Estate Contract in Virginia

Despite the fact that cancelling a real estate contract is not a preferred choice, however, a real estate contract in Virginia is prepared with a clause of cancellation at any level of the process. It is mentioned on the very first page of every real estate contract in Virginia that once it has been signed by the both seller and purchase, it would become legally binding for both of the parties. Every real estate contract in Virginia have some possibilities that could allow both seller or buyer cancel the agreement but only under certain circumstances, else it could result in heavy monetary loss for the party who tends to cancel the real estate contract in Virginia.

As a purchaser of the property in Virginia, you are usually asked to submit an earnest amount as the security deposit when you make the offer to buy a property. This deposited amount is further credited with your down payment or returned back to you if the contract is cancelled under a legitimate reason. However, if you further decide to cancel a real estate contract in Virginia, and decide not to buy the property without meeting the predetermined terms for cancellation of the agreement, it is most possible that you may lose your deposit money along with the amount you paid for a review, home inspection and a title survey. Some possibilities are generally mentioned in a real estate contract, which must be met within a predefined period. If these possibilities are not fulfilled, you would hold the right to get you deposit back. Under normal circumstances, both buyer and seller further negotiates any concerns that might arise during the home inspection or the realtors could further negotiate the deal otherwise. Few buyers are inclined to use the process of property inspection or review of the documents as a legitimate way to back out of a real estate contract if they tend to change their mind, however, it is advisable to wait until you are almost certain about your choice and you have the finances available to afford it before signing the real estate contract.

As a seller, if you change your mind about selling the property, there would be a way to back out from the real estate contract on the basis of the obligation stated in contract related to cancellation. Few real estate contract in Virginia are formed with a clause termed as “kick-out” that allows the seller to accept a better offer within a specified period of time. If your real estate lawyer have missed to mention such clause and you have already signed the contract, than cancellation of a real estate contract in Virginia would allow the buyer to file a lawsuit against you for the breach of agreement. Both buyer and seller should further negotiate through their realtors of real state lawyers in order to keep the agreement intact and to fulfill all the possibilities at their defined dates to avoid any legal combat.