Can You Back Out of a Real Estate Purchase While Losing Only Your Deposit
A real estate buyer is trying to purchase a bank-owned property in Maryland. He tried to get a contingency for an inspection, but the bank is insisting upon an as-is, no contingency sale. If he accepts the bank's counter-offer, then finds a reason to back out of the sale, will he be out only his deposit or could he be held liable for a greater amount of damages or be forced to go through with the purchase of the property?
Re: Can You Back Out of a Real Estate Purchase While Losing Only Your Deposit
The question of whether or not the buyer's liability would be limited to the deposit is something that would have to be determined from the real estate purchase contract. I see some older case law indicating that Maryland permits actions for specific performance against the buyer in a real estate transaction, and absent something in the contract that limits the buyer's liability there would also be potential for a claim for damages for any losses suffered by the seller if the property is later sold for a lesser price than the buyer has offered. The buyer should get advice from a real estate lawyer.