Am I able to cancel a real estate transaction after the inspection process and keep my deposit?
Question Details: I am under contract to purchase a home but after speaking with the home inspector, the home needs more work than I originally thought, and I don't want to take on this level of project. Am I able to legally terminate the contract and get back my deposit money?
Does the contract have a provision, commonly called an "inspection contingency," which allows you to terminate the contract aftet the inspection if issues are found (or found, but the seller refuses to correct them)? If it does, then the contract will alow you to terminate it for this reason, but if it does not have such an inspection contingency, you cannot.
I assume that your contract contains an "inspection contingency" clause. In other words, do you have the right to cancel if the inspection finds issues with the property that you are not willing to accept or the seller cannot remedy? If so, then you can cancel and get your deposit returned. That having been said, even if you do have a contingency clause once the period for cancelling under the clause ends and you later cancel, then you will forfeit your deposit.