What happens if I back out after removing conditions?
Quick Answer
Short answer: You forfeit the deposit and risk a lawsuit for additional damages (e.g., seller's loss on resale).
Detailed Explanation
Once conditions are waived, the purchase contract is firm. If a buyer fails to close, the seller may retain the deposit and sue for any deficiency between the agreed price and a later resale, plus carrying costs and legal fees.
Similarly, if a seller backs out, buyers can sue for specific performance or damages. Consult your lawyer immediately if contemplating withdrawal.
- Mutual releases are possible but require both parties' consent
- Lender may also have recourse if mortgage was arranged
- Title insurance doesn't cover buyer default situations
Disclaimer: This page is for general information only and does not constitute legal, financial, or real estate advice. Always verify details with a licensed Alberta REALTOR®, mortgage professional, or lawyer before making decisions. Buy in Edmonton assumes no liability for actions taken based on this content.
Tim Grover, RE/MAX Excellence • 780-288-5144 • 5607 199 Street NW, Edmonton, AB
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