Aloha Rosa,

Great question!

I am answering this as generally as possible, but hoping you are a Buyer as Sellers have fewer opportunities to cancel in our contracts. Each offer is different. The ability to cancal an offer would most commonly be based on a contingency. 

For example, one of the largest and longest contingencies is C-51 Inspection Period which is commonly 10-30 days (most often 14) in which the Buyer may cancel for any reason. This time period is intended to allow you to investigate all aspects of the property as well as retain the services and inspections from specialists.

Many offers have contingencies on financing, document review, as well as other contingencies in which the Buyer may cancel.

Below is the actual termination section of our new Purchase Contracts for Real Estate transactions in Hawaii.  This is the updated contract, just released in June.

TERMINATION PROVISIONS

C-28    Termination Due to Default. In the event that Buyer is in default for failure to perform Buyer's obligations under this Purchase Contract (Seller not being in default), Seller may terminate the Purchase Contract, and (a) bring an action for damages for breach of contract, or (b) retain the initial deposit and all additional deposits provided for herein.  Buyer shall be responsible for any costs incurred in accordance with this Purchase Contract.

In the event Seller is in default for failure to perform Seller's obligations under this Purchase Contract (Buyer not being in default), Buyer may (a) bring an action for damages for breach of contract, and (b) seek specific performance of this Purchase Contract.  Seller shall be responsible for any costs incurred in accordance with this Purchase Contract. The foregoing shall not exclude any other remedies available under this Purchase Contract to either Seller or Buyer due to the other party's default.

C-29    Termination Due to Contingencies.  If the party for whose benefit a contingency exists, elects to terminate this Purchase Contract because the contingency has not been satisfied, that benefited party shall deliver to the other party a written notice of termination prior to the expiration of the contingency period.  If the benefited party fails to deliver the written notice to the other party within such time period, the contingency shall be deemed to be waived and can no longer be used by that party as a reason to terminate this Purchase Contract.  If the benefited party so terminates this Purchase Contract, Buyer and Seller shall promptly execute all cancellation documents requested by Escrow, and Escrow shall, unless otherwise agreed to in this Purchase Contract, return to Buyer all deposits previously made, less the amount of any escrow expenses or fees chargeable to Buyer.  Thereafter, neither Buyer nor Seller shall have any further rights or obligations under this Purchase Contract.

C-30    Termination Due to Other Circumstances.  Should the parties to this Purchase Contract specifically designate this paragraph to govern the termination process for any term of the Purchase Contract, any party electing to terminate must deliver to the other party and to Escrow a written notice terminating this Purchase Contract within five (5) days of electing termination.  If the terminating party so terminates this Purchase Contract, Buyer and Seller shall promptly execute all cancellation documents requested by Escrow, and Escrow shall, unless otherwise agreed to in this Purchase Contract, return to Buyer all deposits previously made, less the amount of any escrow expenses or fees chargeable to Buyer.  Thereafter, neither Buyer nor Seller shall have any further rights or obligations under this Purchase Contract.

 Please let me know if this helps or if I may offer additional assistance!

Mahalo, Jamie