Cancellation Letter for House Purchase

There are many reasons you may want to cancel a home purchase, such as an unexpected provision in your contract, dissatisfaction, or a change in your financial position. If you pull out of a deal without a justifiable reason, the real estate agent or company may take legal action against you. This is why you should always make your exit professional and legal through a cancellation letter.

A Cancellation Letter for House Purchase is an official document a recent homeowner writes to a real estate agent or company to nullify or cancel their existing buyer’s contract. Because pulling out of a real estate deal can have legal repercussions, sending this letter can protect you from future litigation.

Below are some pointers and sample letters to help you cancel your home purchase.

A contract to purchase a real estate property is called a purchase offer or agreement. You can cancel it and get back your deposit if certain circumstances are met. Generally, you must:

• Read your contract – This is the most crucial step to take when canceling a home purchase. You want to have an attorney point out the cancellation clauses in your agreement and set you in the right direction.
• Study state and federal laws – State and federal laws often provide contingency periods within which you can cancel a home period. There are also provided-for reasons such as lead paint.

Canceling a real estate contract can constitute a breach of contract if you are not careful. Always consult an attorney before drafting your cancellation letter and go through your agreement to ensure it provides for your cancellation reasons. Once this is done, ensure your letter contains the following:

• The names, addresses, and contact information of all parties involved in the contract
• The start and expiration dates of the contract
• Your reason for terminating the contract
• A quoted clause from the contract that allows you to cancel
• Any remedies the real estate agent may make to prevent the cancellation.
• A reply-by date

Consider the following tips when drafting your Cancellation Letter for House Purchase:

• Always read the termination clause on your contract before drafting your letter.
• Explain your reasons for terminating the contract and ensure they are valid and legitimate
• Cite clauses from your contract that allow you to cancel
• Write in a polite and professional tone and avoid using confrontational, violent, or vulgar language.
• Keep your letter to one page or less.

Termination Letter to Purchase Agreement (Word Template)

Terminating a real estate contract often goes beyond drafting a well-written Cancellation Letter for House Purchase. It is always advisable to seek legal advice and interpretation of your contract to determine how it provides for cancellations. Once your attorney gives you the go-ahead, you can get to draft a detailed, short, and professional cancellation letter.