Can I cancel a real estate purchase contract I’ve already signed?

I often hear buyers ask if they can cancel a real estate purchase contract they’ve signed due to a change of heart or because they found a different house they like better. The short answer is, “It depends.”

First, consult your attorney for legal advice specific to your situation. However, usually if the contract has been executed, meaning both the buyers and sellers have signed it and received copies, you have a legally binding contract.

In the Uniform Contract of Sale furnished by the Oklahoma Real Estate Commission most agents use, there is a 10-day period (or other, as specified) where if the results of the buyer’s “Investigations, Inspections or Reviews” are unsatisfactory, you may cancel the contract and receive a refund of your earnest money deposit.

It’s important to note canceling the contract in this manner does not provide a refund of any costs you incurred in the inspection process.

If your decision to cancel the contract is based on the inspection of the property, the buyer’s agent will prepare a form both the buyers and sellers sign giving notice of the cancellation and release of contract and disbursement of earnest money back to the buyers.

After this period has ended, it is very difficult to get out of an executed contract for the purchase of a home. Other causes could be due to the mortgage loan is denied, the appraisal is not satisfactory, or the seller is unable to provide a marketable title.

Questions? Call me at 405-585-6580 or email steve@soldonshawnee.com.