Now it can get tricky – and ugly. If you end an offer without contingencies, you risk losing your serious money. Since you put that money down on the basis of the promise that you will honor with the contract, withdrawal means, for some reason, which is not described in the agreement, that the seller is legally allowed to keep your money. If you have a new home, this contingency allows you to step back if you can`t find a new home that meets your needs. This is something that would be written in your original contract with the buyer. The little answer: yes. If you sign a contract to sell real estate, you are legally bound by the terms of the contract and you give the seller a down payment called serious money. Earn is money shows the seller that you are serious about buying the house and consider following the agreement. But with contingencies on the spot makes using an accepted offer quite legal, while returning your serious money in most cases. A sales or sale contract may also be terminated if it becomes impossible to execute without fault of one of the parties (lawyers say such a contract is “frustrated”). An example is the property that was destroyed in a flood or fire before the buyer took possession of it. Buyers of newly built condominiums in Ontario have 10 days to consider withdrawing from sales contracts.

However, once the offer or counter-offer has been officially accepted, the buyer and seller are legally bound by its terms. If you leave a business, not only do you lose your down payment, but you may also be liable for damages caused to the other party, such as the missed opportunity to sell to another person, expenses resulting from a late move or the loss of the seller`s down payment to another home intended for purchase. The remedy, called “specific performance” (so that you conclude the purchase) is an unlikely event, but a court could still make you responsible for the entire purchase price, plus costs and legal costs. For more information on buying or selling a home, contact the Ontario Real Estate Association or visit orea.com. If things go wrong and you have to get out of a home purchase, you may wonder if you can exit the agreement without penalty.