We are often asked if a Buyer can cancel his contract during the "3 day right of recission..." Sorry but to do this would mean that mixing several laws into one... Real estate is NOT like that... well sometimes..... but not always.
When a Buyer finds the right home to purchase they write an OFFER (not a contract yet) with a Buyer's Agent. The Offer is given to the Listing Agent and then presented to the Seller. If the Seller accepts the Offer and signs it you now have a CONTRACT which is a legally binding agreement between Buyer and Seller.
So, Susan, where do the 3 days come in? Well normally in the Bryan and College Station area it isn't 3 days - it is more like 7. To have this Option Period with an "unrestricted right to terminate" there must be an Option Fee presented to the Listing Agent/Seller. This Option Fee amount is a negotiable fee but in our area it is usually around $100. During this time (length of time is a negotiable item between the Buyer and the Seller) the buyer may have inspections, check insurance prices, talk with a lender, bring in friends and family or just sit and stare at the house until they know for sure this is the one for them. You mean the buyer can pay the ‘$100′ and then just walk away during the Option Period for NO reason? Yes!
The Option Period is not a "3 day right of recission" but it does give the buyer a little time for review, reflection and Buyer's remorse. This time is for buyers to work on making sure they can get their loan, that they love the house, that they are sure it has no defects they can't live with or anything else. Remember this is at the BEGINNING of the transaction NOT after the Buyer signs the closing papers and pays for the house!
You had your "right to change your mind" BUT this does NOT work after you go to ‘closing'. At closing the buyer signs forms and pays his money while the seller accepts the money, signs the deed and other forms and the title to the property is transferred. Now you do NOT have 3 days... When you sign and pay - YOU OWN IT!
Once your Option Period has passed you have given up your right to terminate for most reasons so it is expected that you will be going through with the transaction and buying the house.
Do you have questions? Let me know!
Susan Hilton - Realtor & Sales Trainer for Century 21 Beal, Inc.
#1 in Real Estate in Bryan and College Station Home Sales
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