Can I terminate a contract just before the day of closing?

UPDATED: Oct 1, 2022

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Can I terminate a contract just before the day of closing?

I’m the buyer. There is no earned money on contract. We discovered by accident the property has termite damages and we accepted the repairs done. Then the title was questionable to the point our lender wont proceed with paperwork until clarification was acceptable. They got it today. On last visit to property the home was vacated but left dirty and several item on it. Just feel uneasy signing my name on a mortgage and won’t feel WOW with the purchase.

Asked on September 18, 2018 under Real Estate Law, Arkansas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

No, you can't, not unless:
1) there is some contractual contingency or provision allowing you to terminate it now without penalty and you comply 100% with its terms;
2) you can show the seller committed fraud, or lied about something material or important, upon which you reasonably relied in deciding to buy the home;
3) the seller breaches or violates their obligations in a material, or important way.
Otherwise, the contract is binding upon you. If you don't go through with the purchase, the buyer can sue you for violating the contract.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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