Can I bail on this deal?

I signed a contract with homeowner in default on Jun1, 2006. Mailed them the contract and they signed and dated on 6/27/06
I didn’t include any co’s and said I would pay cash.
i think I paid too much because no one wants the house. I want to assign contract…can I get out of this if I can’t assign it?
I don’t want to buy the place, its a dump! I m getting nervous…
I didn’t include financing co’s or anything or inspections. thought I had a good deal but the market turned.
can I get sued? how do I tell the homeowner I want to walk away?

It all comes back to the contract, and what it says. Most contracts include a clause about liquidated damages and/or earnest money. What does yours say about those things?

where is the property located and what’s the deal?

Contract says if buyer backs out the seller keeps earnest money, $10 in this case, with no further damages, and if seller backs out, they loose it…but I was still nervous they could cause trouble for me. It is a Ron Legrand contract.

I am not an attorney, nor do I profess to be one, but if you pay him the $10 then your obligation in the matter is fulfilled. Just make sure there is a paper trail in case the seller claims later they never received the money.

what if they didn’t get it? I sent it to the brother who in turn got the contract signed?