Consequences of Cancelling a House Sale Contract in Virginia

Considering the possibilities that may lead to cancellation of a house sale contract in Virginia, the most of the house sale contract in Virginia are formed with a clause of the right of cancellation under a certain circumstances. If your contract is not formed with a legitimate exit options or you decides to cancel the house sale contract in Virginia without a contractual obligation, your act would be considered as the breach of agreement leaving you at risks of monetary losses as well as possibility of lawsuit against you. When a buyer breaches a contract without a legitimate reason than the seller have a few options to recover any damages caused, which includes confiscation the deposit money submitted by the buyer. A house sale contract in Virginia might be written with the applicable remedies in case of possible breach. Otherwise there is possibility that the breaching party might freely walk away from the deal or face a lawsuit. Another thing to remember about cancelling a house sale agreement is that, few contract might include a clause that would enforce the breaching party to pay for the lawsuit charges if the seller decides to sue the buyer for cancelling the house sale contract in Virginia that might result in heave monetary losses for the buyer.

Most of the house sale contracts in Virginia contain a clause of liquidated damages that states the possible remunerations a seller would get if the buyer decides to cancel the agreement without any legitimate reason. This amount could be equal to the deposit money or down payment or a different amount. These liquid damages would also account for any monetary loss caused to the seller during the time while the property was off the market. In a house sale contract, where liquidated damages are predefined, you would be well aware of the cost for breaching the agreement without any legitimate reason.

There are a number of possibilities that could be predefined in the house sale contract letting a buyer back out house sale contract at different levels of the process of buying. A few possible contingencies might allow buying party the to exit the sale process where they would be in a situation to be unable to carry out the sale process subject to unavailability of finances in case of disapproval of mortgage loan, a condition associated with the sale of buyer’s current home or revelation of any physical or title flaw revealed in the process of property inspection. These contingencies might enable the buying party to cancel a house sale contract with a legal reason and no monetary losses but also restrict their ability to finalize the deal because in case there are multiple offers in front of the selling party, they would be most likely to accept the one with the minimum contingencies. It is advisable to explicitly consult with your realtors and real estate lawyers before signing the house sale contract or deciding to back out of house sale contract.