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Can the buyers back out without forfeiting their earnest money? Utah

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jtho924

Junior Member
I am in Utah. I have been trying to sell my house for almost two years now. On Friday we finally had someone make an offer, accept the counteroffer and sign the paperwork. We were under the impression that as long as everything came back ok on the appraisal on the inspection, they could not back out (with a few exceptions with the Utah Due Diligence laws). Monday we got a message from our realtor stating that the buyers had changed their minds because they "could not afford it". The buyers had been prequalified for the loan prior to going through the house, and were aware of what the payment would be, as it was in the papers they were presented at the time of signing. The monthly payments on the house actually end up being less than it is to rent around here, as the house is on the lower end of the market. Are the buyers able to just cancel like this? I was under the impression that unless they could not qualify for financing, they could not back out for monetary reasons without giving up the earnest money. Please let me know, as we feel as though this is our only hope where the market for houses at the bottom end (smaller houses) of the market is not doing well in our area.
 


Zigner

Senior Member, Non-Attorney
I am in Utah. I have been trying to sell my house for almost two years now. On Friday we finally had someone make an offer, accept the counteroffer and sign the paperwork. We were under the impression that as long as everything came back ok on the appraisal on the inspection, they could not back out (with a few exceptions with the Utah Due Diligence laws). Monday we got a message from our realtor stating that the buyers had changed their minds because they "could not afford it". The buyers had been prequalified for the loan prior to going through the house, and were aware of what the payment would be, as it was in the papers they were presented at the time of signing. The monthly payments on the house actually end up being less than it is to rent around here, as the house is on the lower end of the market. Are the buyers able to just cancel like this? I was under the impression that unless they could not qualify for financing, they could not back out for monetary reasons without giving up the earnest money. Please let me know, as we feel as though this is our only hope where the market for houses at the bottom end (smaller houses) of the market is not doing well in our area.
The answer to your question lies entirely within your contract. We are not privy to your contract. Why don't you start by asking your real estate agent? If that doesn't help, have an attorney review it.
 

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