Legitimate Reasons You Can Get Out of Your Offer on a House

It seemed like the perfect home to buy. It was close to your kids’ school, walkable to restaurants and stores, and priced in your budget. Two days after the sellers signed the contract, you panic and have buyer’s remorse. Can you legally back out of buying a house at that point?

If you opt out of your contract because of buyer’s remorse, there can be consequences, such as losing your deposit. Terminating a contract offer isn’t as easy as saying you don’t want the house anymore. You can still get out of the offer, though.

But there are several legitimate reasons why someone can get out of the contract, says James Lowry. He is an attorney at Law Offices of James Lowry in Chicago.

“For one of my clients recently, the inspector found asbestos near the air ducts. That was a good reason to walk away,” he says. “In many areas of the country, including Chicagoland, there is a five-day attorney review period. For any other reason than price, an attorney representing either the buyer or seller can reject the contract.”

The contract itself gives the attorneys this power. He or she can also propose changes to the contract. Those proposals can cover anything except the price.

All too often, an attorney cancels a contract and their client immediately turns around and buys a different house.

The best time to back out of a contract

If you feel like you shouldn’t or can’t buy the house, act during the contingencies and agreements. That’s your best time to back out of buying a house. Contingencies are there to protect you if inspections find something or the appraisal comes in below the price.

Here are some contingencies and reasons that can help you get out of your contract:

Can you back out of buying a house if your finances change?

Your lender may have given you a pre-approval letter. However, financial situations can change between the pre-approval and the home closing. Just make sure there is a contingency in the contract about financing since anything can happen.

Home not selling

If you’re unable to sell your current home, you might be able to get out legally. To make sure you’re safe,  write failure to sell your current home into the original contract as a contingency.

“The closing date can be a bone of contention,” Lowry says. “It can definitely be an issue especially if somebody has to sell their property by a certain date, or they have two closings on the same date.”

Owning two homes at once can also affect your loan. Under Fannie Mae rules, the lender counts both mortgage payments when it qualifies you. The exception is a current home with a signed sales contract and cleared financing contingencies.

Undisclosed disclosures

A seller must follow state and federal regulations on disclosing known facts about the property’s condition and its history.

Say a violent crime occurred in the home you’re purchasing and the seller didn’t disclose it. In that extreme case, learning about it may be a way to get out of the contract.

Every state, though, has its own rules about what sellers need to disclose.

Being honest that you want to back out of buying a house

Market conditions vary by area, so check current local supply data. Where homes are selling quickly, the seller may have other offers. In that case, you might just want to tell the truth that you want to back out. Your real estate agent might be able to ease you out of the contract, especially if they’ve done it before.  Just be aware that you could end up losing your deposit.

Conditions not acceptable for an FHA loan

“FHA financing can be difficult sometimes. The properties have to be in certain conditions. If they aren’t, it is another way to get out of a contract,” Lowry adds.

FHA loans might be trickier to work around. Still, they offer low required credit and a low required down payment. While you want the home buying process to go smoothly, an FHA loan still makes sense for many home buyers.

Using the appraisal to back out of buying a house

If the home appraises below the sales price, the lender bases the loan on the lower appraised value. Unless you cover the gap or the seller lowers the price, that can stop the sale.

Boundary lines off

The property description may be inaccurate, like claiming 300 feet of riverfront when there’s only 200. That gives the buyer a chance to walk away from the deal.

There are a lot of laws surrounding real estate, so both parties will want to be as accurate as possible.

Repairs not made

There’s always a chance for a last-minute walk-through before the closing. Sometimes, that seller makes promises in the contract to fix or renovate this or that.

The seller may not have made these fixes and repairs by the walk-through. Or they may not be able to show contracts that the work will be done and paid for. Either way, it’s another chance to back out of the sale.

Ending a home purchase contract is not an easy task. So, take your time to understand the process of buying a home. Take your time in making that decision to make an offer, too.

Check your home buying eligibility. Start here (Nov 14th, 2026)