Legal Question in Real Estate Law in Virginia

Information on Buyer Would like to default contract & not go to closing

My husband and I put a contract on a house that we later found to be out of our budget range, however, the mortgage company approved the loan with a 47% income to debt ratio. We are trying to back out of the loan, but the realtor said what we signed was legally binding and that we would not be able to get out of the house and we have to go to closing. Is there any way other than going to court to get out of this house. Again, the problem is we don't think this house is in our range.


Asked on 10/11/01, 9:55 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Information on Buyer Would like to default contract & not go to closing

You signed a legally binding contract. Unless the seller agrees to let you out, you are bound (and if the seller agrees, s/he will likely owe the realtor's commission anyway, so that's unlikely to happen without a substantial incentive offered by you to buy your way out of the deal). The contract itself may have some other contingencies (inspection, etc.) that may provide a way out - see a lawyer ASAP. But the basic point is that you can't just walk away from a contract if you later decide it was a mistake.

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Answered on 11/22/01, 12:39 am


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