Texas REALTORS® 2018 Winter Meeting | Feb. 9-13 | Austin, Texas

Doesn’t the buyer have to give a reason for backing out?

Translate this page
A young woman with brown hair wearing a form-fitting gray sweater shrugs.

05/06/2014 | Author: Legal Staff

I accepted an offer on my home, and now the buyers are backing out. I thought they had to a give a valid reason—like that they can’t get a loan—but their agent says they don’t. Is that true?

It depends. If the buyers paid you for a termination option (see Paragraph 23 of the contract), they can cancel the deal for any reason within the agreed-upon time period. In that case, the buyers don’t owe you an explanation. You get to keep the option fee negotiated in Paragraph 23, but the earnest money will be refunded to the buyer.

If the contract does not include a termination option—or if the option period has expired—the buyers would be in breach of the contract if they tried to walk away without giving a contractually acceptable reason, such as not being able to obtain financing under the terms specified in the contract. 

Have a question about buying, selling, or leasing property in Texas? Ask us. Not all submitted questions can be answered. 

Categories: Legal, Buyers, Sellers
Tags: legal, selling, buyers, sellers, buying, consumers, contracts

advertise with us

Legal disclaimer

The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

Advice for Consumers

How Texas REALTORS® are helping homeowners

You found dozens of homes listed online that you love. Now what?

Why thousands of REALTORS® will be at the state Capitol Tuesday


More advice for consumers