Legal Question in Real Estate Law in North Carolina

backing out of buying a house

we're about 3 weeks from closing. We've already spent $500 earnest money, $395 for home inspection, & $90 for termite insp. The home inspector wasn't able to do a complete inspection due to personal items blocking attic access, etc. We have to pay another $125 to have inspector come back out. Termite inspection report lists evidence of previous infestation, but no active evidence. Sellers are willing to pay 1/2 of $660 to have home treated again, but we, at the moment, do not know how much damage was done to home. What can we expect to happen if we back out now? We feel like there may be hidden issues with the house. And we can not afford to find out something like that after we are in the house.


Asked on 3/30/07, 9:28 pm

1 Answer from Attorneys
Jeff Rosner Rosner Law Firm P.A.

Re: backing out of buying a house

Evidence of previous infestation that has been treated will probably not be grounds for breaking the contract. So if you back out, the most likely scenario, is that you can expect to lose your earnest money.

If the Sellers were so inclined, they could sue you for specific performance (not too likely) or damages they sustained (for instance if they sold the house to new Buyers for $10,000.00 less than you were going to pay).

This is not meant to scare you - it is just in the realm of possibilities. The most likely scenario is that if you back out of the contract but agree that the Seller can keep the earnest money, they will agree.

Why don't you ask the Sellers to pay the $125 reinspection fee since it was their items blocking access?

Also, shouldn't you have a closing attorney that can answer these questions? I am asking you this because if you are somehow planning on closing on any house without an attorney, I would strongly advise against it.

- Jeff

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Answered on 4/01/07, 7:43 am


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