Can I back out of home purchase after inspection?

Are you currently purchasing a home or starting the process and wondering, Can I back out of Home Purchase after Inspection? In this video, I discuss backing out after home inspection and why your home inspection should be completed during your contingency period so you don’t risk losing your earnest money deposit if you decide to cancel escrow.

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What is a home inspection?

The home inspection is a thorough review of the property and all of its major systems including electrical, plumbing, HVAC, pool, spa, roof and much more performed by a home inspector.. The inspection is completed early in the escrow period while the buyer is within their contractually agreed contingency period (typically the first 17 days of escrow in California). The home inspection is not required but is highly recommended to anyone buying a home.

Can I back out of buying a house after inspection?

Yes in most cases as long as you performed your inspection during your contingency period and still have those contingencies in place. It’s extremely important that you do your home inspection during your inspection period in the real estate purchase agreement so that you don’t risk losing your earnest money deposit (emd) if you cancel escrow after doing the home inspection.

In California, the Real Estate Purchase Agreement is written to allow you 17 days to do all of your inspections during the home buying process. As long as you perform your home inspection during this period then you should have no issues backing out of a home purchase after inspection.

In fact, a buyer can back out back out for any reason during that 17 day contingency period and no risk losing their deposit as long as your contingencies are still in place.

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[WilChu]

The process seems backwards, is there a reason why the inspection isn't completed prior to an offer being extended - like with a used car purchase?

[aaronstansk-popdreamcatche]

Just got back the inspection for a house we liked. It showed us old knob and tube wiring, no ground on any outlets, and likely would need re-wiring top to bottom. Then the basement has moisture issues, with a water heater rusted and the support posts, too. There's other issues. We put in our contract that the sale was based on the inspection. I can't see the buyer willing to make repairs, and giving us a few points on the closing wouldn't even reach what we'd likely be spending. So, we're walking away. Hard to do, but it would be a money drain for years to come.

[XrazorstylistXOXO]

Seller didn’t want inspection. I said no deal without inspection. Seller said ok, inspection failed. House not grounded. Outlets looked new with the button to trip. There was a few other things that didn’t pass but more minor and a little out of the ordinary things also. Looked more detailed at things and everything was done not correctly. From the trailer kitchen cabinets and very little sink with bathroom knobs in the kitchen. To the 30 yr old furnace hooked up to the 75 year old furnace that needed replaced. So I backed out of the deal. So worth it to test. The house was too small to get a couch and full bed in door. I measured failed

[Parahax]

Currently in escrow, we have an inspection contingency. Inspection revealed plumbing, flooring and roof in very bad condition. I want to back out, my realtor doesn't want to lose this commission. Saying it might be too late to back out. She's not being truthful correct? Thank you 🙏🏻

[moonkitten]

Thank you so so much. We have been looking for a home and thought we found one until I met with the spectator and two main things stuck out aside from the other minor things . The oven was off by 10 degrees cooler, no vent on top to extract the smoke . Second, he found mouse traps in the attic. Even though he said no droppings that was enough for me to say heck no. We just gave down the escrow two days ago can we back out and get our mo why back?

[grumpyschnauzer]

In our scenario the Inspector did not detect mold. We found mold at the final walk thru (after some rain). Pictures in the listing show a new post on the porch but old Google images show a moldy post. Also, seller did not satisfy his contractural agreement to remove metal sheds in the backyard. These sheds were present at the time of the walk-thru. We are heavily considering backing out after this seller was also doing everything possible to stall the sell.

[conanbeagle]

Hello, I was looking at a reo home in another state with the listing agent which said the bank would not allow for contingencies since it was sold as is but once I gave my EMD and submitted my offer I could do an inspection but if I wanted to back out I would not get my EMD back. This scared me... No contingencies allowed? Couldn't I be forced or sued into closing if I backed out without a contingency or way out in the contract?

[Divided_Highway]

In NJ. Inspections completed within timeframes. Variety of problems (possible mold in basement, non-fire rated door, water in basement, some wiring not up to today’s standards, etc.). Sellers declined to address. We did not agree to terms so, as the contract reads, we would receive our earnest deposit ($3, 000) back and the contract would be voided. They refused to release earnest deposit so contract was never voided. They sold house to another buyer while still under contract (because we did not agree to terms and the contract was not voided). They now want to settle for half, but would it be worth it to go to small claims court?

[TraditionalWIns]

Buyer did not release contingencies and decided to back-out after the 17 day period but selling agent is giving a hard time with emd. what can be done? It there a formal timeframe to release emd?

[bpinoy]

We decided to back out after the home inspection due to water marks potentially from seepage. It’s been 24 hours and the sellers haven’t signed the mutual release document. How long should we wait for them to sign it? What if they don’t want to sign it?

[jkbc]

what if the seller says they are willing to fix everything and say I am the buyer feeling uncomfortable to move forward purchasing the home due to all the known issue from the inspection reports, can I still back out?

[JAP]

What happens if you go past your contingency date and haven’t yet removed it? Are you still able to withdraw or would you be breaching the contract?

[karasellars]

I am desperately trying to back out of a contract currently, did so AFTER inspection and my contingency period is up in two days. Seller, his listing agent and his attorney are giving me issues. I let them know and signed the release that I wanted to back out over a week ago and he still hasn't let me go. They're saying its breach of contract. Can you please help with advice?

[robertedwardclarkjr]

Do the buyer and seller have to sign the cancellation in order for the cancellation to be official? Because I already signed it but the seller hasn’t. There property still shows pending.

[rafaelsandoval]

Please help I'm in the middle of purchasing a home the inspector found sagging roof 2 inches and a half puncture shingles the valley of lineman with no drop in the middle of the roof where water water has potential of settling we asked for the seller to make those repairs in written he turns around and hires a buddy to go inspect the roof why would we needed inspected when we're asking for him to fix it and refuses to do so his buddy is saying that there's no structure damage that everything is an order ended the roof has no leakage when the drywall in the garage is completely cracked with moisture do we lose our earnest money if we back out the house already has been appraised as well what happens in the situation please help

[sportsoccer]

Hi Jeb, thank you so much for your video! If a seller requests to only have a 10 day buyer inspection contingency, does that mean that the inspection and any negotiations have to happen within the 10 days? Or that the inspection has to happen within 10 days, and after the 10 days you can no longer back out, but negotiations can still occur?

[rudymedina]

I have a question and hopefully you could answer it for me, I went into escrow for this home, I did inspection and appraisal but I wasn't satisfy with the home, I talked to my agent and told her I wasn't satisfy and she said I couldn't back out because I would lose my emd, I asked about contengies and she said I signed a form releasing them which was on the 3rd of this month, thats when I deposited the emd. It wasn't until the 4th where I had the inspection done. Is she lying to me trying to get me to buy the house? Is there such a contract that you go into escrow without contingencies? Thanks in advance.

[JayTee_]

Is there any free mediation in CA? my deal fell thru and seller refused to return my earnest deposit?

[yukisnowsnowsnow]

can licensed inspector inspect houses you buy or spouse buy?