I just signed a contract to purhase a home yesterday and today I saw another house that is perfect for my needs and investing criteria. I gave a big earnest money deposit of $10k also. Is there any law or clause that I can get out of the contract in 5 days or so? Please respond. Thanks in advance for reading and posting.
When you made your offer you gave them terms that allowed you to get out of the deal if the house did not pass inspection or if you could not get financing. The inspection period is usually 10 days after the inspection period the earnest money goes hard and you can’t get it back. I would never do this because it is acting in bad faith but the house could not pass your inspection criteria freeing you from the deal. You will likely be tied up trying to get out of the first deal that you will miss the second deal anyway. What I would do is buy both houses. That would prevent building a reputation in the real estate community of being a jerk.
Bluemoon, thank you for the post. Fortunately the house that came onto the market today is not a good candidate for my investments and dont have to go thru backing out of the existing contract. I knew about the contingencies but want to know if there is anything like a 3 day period before the contracts gets concrete. Your post answered my questions, thanks for your post.
In NJ (where I live and invest) there is a 3 day attorney review clause in any contract provided by a real estate agency. Read your contract.