Can I back out of contract in escrow?

[mrgonzo]

What is the name of your state (only U.S. law)? hawaii

I have signed a contract for a piece of land several weeks ago, the contract is very airtight and has no "outs" or contingencies at all as it was going to be a cash deal. Total contract is for 38,700

I have given the realtor a personal check for 1700 - it is still not cashed, I would like to put a stop payment on it.

If I put a stop payment on the check and inform the realtor, will I be sued? and if so can they sue me for 38K or just for the deposit or what? what is the norm?

What would you do?

 

[FlyingRon]

You could also be hit with criminal charges.
The realtor could sue for whatever their damages are. The contract probably calls for the retention of the deposit as liquidated damages, so they could at least grab that amount.

Specific performance (getting you to pay the full amount and actually buy the property) is unlikely.

Have you contacted the seller/realtor to see if they'd let you out?

 

[HomeGuru]

What is the name of your state (only U.S. law)? hawaii

I have signed a contract for a piece of land several weeks ago, the contract is very airtight and has no "outs" or contingencies at all as it was going to be a cash deal. Total contract is for 38,700

I have given the realtor a personal check for 1700 - it is still not cashed, I would like to put a stop payment on it.

If I put a stop payment on the check and inform the realtor, will I be sued? and if so can they sue me for 38K or just for the deposit or what? what is the norm?

What would you do?

**A: no contract is airtight. Spend $500 to have an attorney review your contract. If you really can;t back out the seller can sue for specific performance which would be for the entire purchase price of the property, costs to resell the property, other losses etc.

 

[mrgonzo]

Thank you for the replies; I looked over this more today and it is so far along in escrow at the very minimum it looks like I would be out 1500 or so to cover that companys fees - so I have decided to just go through with the transaction.

In the future I will definitely look over contracts a little better, it is totally my fault, I just assumed there were contingencies - but my realtor removed all contingencies...

 

[HomeGuru]

Thank you for the replies; I looked over this more today and it is so far along in escrow at the very minimum it looks like I would be out 1500 or so to cover that companys fees - so I have decided to just go through with the transaction.

In the future I will definitely look over contracts a little better, it is totally my fault, I just assumed there were contingencies - but my realtor removed all contingencies...

**A: I hope you are not buying land on a live volcano.