Home sellers have the right to cancel their real estate agreement for a number of reasons. If you are a home seller, it is important to understand your rights and what you need to do in order to cancel the agreement. In this post, we will discuss the reasons why home sellers may want to cancel their agreement and what they need to do in order to proceed.
Can you cancel if your new house builder raises the price?
If a builder requests a customer to pay more for a property than what is stated in the Agreement of Purchase and Sale, the builder must present explanations and appropriate evidence. However, new house purchasers should be aware that higher expenses are not an acceptable cause to cancel the transaction. Contracts can only be canceled for reasons indicated in an Agreement, according to the Home Construction Regulatory Authority (HCRA), the agency responsible for regulating the persons and firms who build and sell new houses in Ontario.
Can a seller legally cancel a real estate contract?
If a contract is silent on the issue of cancellation, then the parties are free to cancel the agreement at any time for any reason. However, if the contract contains a clause that gives either party the right to cancel under certain circumstances, then one party may exercise that right if those conditions are met.
For example, a contract may allow either party to cancel if the other party breaches a material term of the agreement. If the buyer fails to make a required deposit, or if the seller refuses to allow the buyer to inspect the property, then either party could cancel the contract.
Other common clauses that allow for cancellation include:
- The inability to obtain financing
- The sale of another property
- The death or illness of a party
If any of these conditions are met, then the party wishing to cancel would need to give written notice to the other party, typically via certified mail. The notice must state that the party is canceling the contract and the reason for cancellation. Once this notice is received, the contract is considered canceled and both parties are released from their obligations under the agreement.
If you are considering canceling your real estate contract, it is important to consult with an experienced real estate lawyer to understand your rights and options. A lawyer can help you determine whether you have grounds to cancel the contract and can assist you in drafting the necessary notice to the other party.