Legal Question in Real Estate Law in Maryland

Re: Can a seller back out after already signing?

Your question is confusing. If there is a "seller" of the property on which you are taking out a mortgage loan and you're buying it, there's no right of recission for either party. When you refinance a mortgage, federal law entitles you to cancel the transaction within 3 business days. You should have been given a form for this purpose which explains how you go about doing it. There is no "seller" as such, unless you are referring to the mortgage company, and they can't withdraw from the transaction.

Re: Can a seller back out after already signing?

I assume you are asking whether the mortgage company has a right to withdraw its "offer" of a mortgage which you accepted and closed upon.

No, the mortgage company cannot withdraw an offer of a mortgage after it has settled. This 3-day period, often called a "cooling off" period, applies to the consumer and not the mortgage (or refinance) company.

This cooling off period gives the consumer a period to reflect upon the transaction and decide whether they truly want the transaction. A similar period applies to limited classes of transaction such as door-to-door sales but DOES NOT APPLY to car purchases as the unwary public often contends. There are other remedies for car purchases.

Now if you are asking about whether you can rescind a contract for the purchase/sale of real estate. This is a complicated matter and requires consultation with an attorney.