First Time Home Buyer Contract

If you are a first time buyer looking at homes in the San Francisco Bay Area, things can seem pretty confusing. It is important to understand what happens if you are a first time buyer or seller and you decide to cancel the first time home buyer contract.

Mark Moz Photo
Mark Moz Photo

Speak with your local Realtor to understand the repercussions of the cancellation of the first time home buyer contract. There are various reasons that a home sale might not close including:

• Sudden anxiety about finances
• Rejected mortgage papers
• Finding another option
• Sudden lifestyle change
• Natural disasters

If you are a buyer:
If you are buying a home and for whatever reason decide not to go through with the buy, try to do so before you put it in writing. Before you sign the residential buy agreement, you are in the negotiating stages. There is no need to make a earnest money deposit at this point, so you won’t be losing any money.

If you have already signed the residential buy agreement, the process is more complicated. Common contingencies include:

• Mortgage loan contingency
• Home inspection contingency
• Sale contingency
• Appraisal contingency

If you decide to withdraw your offer after the contingency period has passed, you will be default. And will lose your earnest money deposit.

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If you are a seller:
If you are a seller, you have a lot less wiggle room. Putting your house up for sale and signing a contract is a clear legal sign that you want to sell. If you change your mind then you should know that you have to provide a reason. And because there are other players involved. You may have not only to return the earnest deposit money, but also pay for other costs the buyer will now incur. In some cases, you may also have to pay costs that your Realtor may have incurred. In most cases everyone will agree to move on without asking for more fees. as long as they don’t have any more monetary losses other than the earnest money deposit.
Its important to read and understand the residential listing agreement before you sign it. Make sure you understand any costs that you will be responsible for if you later decide not to sell your home.
To know exactly what happens, contact your realtor in touch with homes, condos, lofts in San Francisco.

Any questions? Would you like to chat? Call us at 415 378-6614 or send us a note.

We look forward to hearing from you!

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