As always, a purchase agreement is a legal and binding agreementbetween the buyer and seller of Real Estate property. Most of these contracts (as in my state) will already include provisions for certain contingencies. Such as; if the property has to appraise at purchase price, home inspections, and letter of approval from the buyers lender. Now, if your purchase agreement states a specific time frame on the contingencies in question, and the buyers have not performed in that given time frame, then the buyers are in breach of contract and yes, you may terminate the agreement.
Let talk about contingencies that can just drop off. For instance, If the buyer put in to the agreement that they wanted to have a home inspection performed in let's say 5 business days and for one reason or another decides not to have one done, this contingency will just drop. The buyer nor seller should be able to cancel on that issue. If no time frame is presented and agreed to in your agreement, I suggest that you
chat with a Real Estate Attorney. Good Luck
Answer Submitted on Thu, Jan 8 2009
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