We were on top of the world Sunday night when we placed our offer on a house, and woke up the next morning with great news that our offer had been accepted. We had signed the purchase agreement contract and felt like our dreams of owning a home were within reach. Sadly, the good feeling only lasted 10 hours, as we were later notified they had received a better offer for 15k more than ours, and “as is”. We were asked to match the offer or else they would go with the other one. We decided it was not worth it to us and not to agree to the changes.
Today, we were informed they’re going to cancel our contract and go with the other buyers. We were left wondering if this was even allowed, and if so, what were the repercussions for the sellers? We hadn’t broken the contract in any way and we hadn’t even gotten into inspection yet, so we felt rightfully angry.
If you’re in a similar situation, here are three steps to take.
First, you need to review your contract. They will have a termination clause outlined which will answer your questions. Some, for example, have a 3 day unilateral right to terminate for either party.
Second, you should ask your agent. You do have an agent right? They are familiar with the terms of your contract and how they work in your jurisdiction.
Third, you should be pragmatic. You could certainly attempt to enforce the contract. But that could be painful and expensive. You must also be prepared to uphold your end of the contract to the letter. You mentioned having an inspection, so make sure you’re familiar with the details.
No matter what the outcome, it’s never fun to have your dreams dashed. We’ve all been there in some form or another, and while it may not be easy, it’s important to keep your head up and move forward. Make sure you understand your contract and talk to your agent to ensure that you’re making the best decision for yourself.