It happens occasionally. A buyer gets all the way to within a day or two of closing and something changes where they no longer want to buy the home. No problem, right? Nope. It can be a big problem.
I had this happen this week. My buyer had been under contract for a month and was past all of his timelines when he decided he wanted out. To be fair, his wife decided she did not like the house. They called me and said "We want out".
This can trigger a series of events such as a certain loss of earnest money, possible lawsuit by the seller, and even a demand by the agents for payment of commission earned. None of these events are very good for the hapless buyer.
Once I described these possibilities to my client he made the decision to proceed and we closed yesterday. I feel bad for them, but indecision on the buyers part needs to be dealt with before due diligence is past.