Published 17th July 2019
What happens when you decide to pull out of a property sale? More importantly, when can you make this move? In theory, you can cease the sale even if you reach escrow. Although it can be daunting and, in some cases, expensive from a cost point of view, you will still have options available as a seller. To help you better understand when (and how) to cease a sale, we have put together a short guide. Keep reading to find out when you can safely pull out of an upcoming property sale.
There are many reasons that you may decide to not go through with a property sale. You may decide that you want to keep your property. You may not have been able to find new property or your offer on a new property may have been rejected. You may be facing unexpected life changes that have made the sale impossible. Whatever the case, finding yourself in the position of having to pull out of a sale can be daunting. To prevent stress and problems, it is essential to know exactly when you can cease the sale. Ideally, it is best to pull out before anything has been signed. This will save you a great deal of time and money. You should also understand what steps to take to stop the sale at each point. Some things to consider include the following:
If you have not yet signed any contracts, it will not be too difficult to stop the sale. You may find that you get a better offer or you may find that you have uncovered something about the seller during the process. You may simply change your mind about selling your property. If you have already signed contracts and you are in the escrow phase, it becomes a bit more complicated. You can still change your mind at this point – you may have to pay additional costs and deal with lawyers to be sure that the buyer does not lose out. If the buyer has already sold their property, this becomes even more complicated. The buyer could even opt to file a suit against you if they feel that they have incurred major losses.
One of the best ways to protect yourself against such potential suits and issues is to ensure that you have a carefully written contract. A good contract should always be drafted and reviewed by a professional, experienced conveyancer. Make sure that you have provisions that deal with either the seller or the buyer backing out at any given point. You can also include clauses that relate to backing out after the home inspection, which will protect you as a seller, too. Thinking ahead will help you avoid plenty of problems and also help you save on potential costs that are incurred by pulling out of a sale.
Home Legal Direct has a team of highly experienced property conveyancers in the UK that can assist you throughout each step of the conveyancing process. Whether you are selling for the first time or you are an experienced property investor, we will help you negotiate your property sale to get the best deal possible.