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What contingencies exist for getting out of a contract?

If you're wondering about contingencies and thinking about backing out of a real estate agreement in Florida, the first thing you should know is that you never want to assume anything. All contracts can be written differently. Yes, there are common contingencies that are very likely, but you always want to go through the contract carefully to be sure you know exactly what is there.

That being said, one of the most common ways people get out of contracts is when the home does not pass the inspection. If it fails, you may be able to walk right away. You may also be able to demand that the seller make the repairs, and, if the seller refuses, then you can walk.

Another key point is the appraisal. Sellers can list a house for any amount they want, but the appraisal tells you how much it's actually worth. If the appraisal comes back and shows that the home is worth far under what's being asked and you don't want to overpay, you may be able to break the deal.

Finally, you could get out of the contract if your loan falls through. Your offer will be accepted, in most cases, with pre-approval. Still, not everyone who is pre-approved actually gets the loan. If yours is denied, you probably can't afford the house, so you can then break the contract and the seller can look for a new buyer.

As you can see, there are a number of ways to get out of an accepted deal without penalty, and it's wise to keep them in mind. However, always be sure you know exactly what legal options are offered in your specific contract, as there could be many other contingencies that are not noted here.

Source: Inman, "3 must-knows before backing out of a purchase contract," Tara-Nicholle Nelson, accessed Sep. 09, 2016

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