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No Right to Cancel for Buyer's Remorse By K. Michelle Lind Posted: April 2003 ~ Reviewed December 2004 |
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You've spent months looking for a new home, comparing neighborhoods and narrowing
down the alternatives. Finally, you make your decision and submit an
offer to buy the home that is just right for you. But once the seller
accepts your offer, you start to worry. Can you afford this home? What
about the property taxes and utilities? What if you lose your job? You
feel like you want to cancel the contract now - to have a little more
time to think. This common response to buying a home is called "buyer's
remorse." You have probably made the biggest financial commitment of
your life and it can cause anxiety. Fortunately, feelings of "buyer's remorse" are usually short-lived and the excitement of buying a new home returns. Since the advantages of homeownership far outweigh the disadvantages, most buyers quickly realize that the financial commitment is also a good investment in the long run. Some buyers believe that they have a three-day cancellation period by law to cancel a contract to purchase a home - but no such law exists. The only rights are those that are written in the contract. In the most common home buying contract, the Arizona Association of REALTORS® Residential Resale Contract ("Contract"), a buyer can generally cancel only for the failure to qualify for financing after a diligent and good faith effort or based on the disapproval of some aspect of the home during the specified time periods. During certain time periods, the Contract allows a buyer to give written notice to the seller of any items reasonably disapproved, cancel the Contract and receive a refund of the earnest money. If the buyer provides the seller with an opportunity to correct the items disapproved and the seller can't or won't correct the items disapproved, the buyer again has the option to cancel the Contract. The items in the Contract giving rise to a buyer's right to cancel are:
Using a REALTOR® in your home search will reduce the chance of suffering from buyer's remorse. Your agent can help you evaluate your needs and make sure the home you've chosen will be a good investment. The right REALTOR® can assist you in finding the right home and getting through the anxious times. K. Michelle Lind, Esq. K. Michelle Lind is General Counsel/Assistant CEO to the Arizona Association of REALTORS® (AAR). She serves as the primary legal advisor to the association. Michelle oversees AAR’s Risk Management Committee, which includes professional standards administration for twenty of the state’s local REALTOR® associations, and the development of standard real estate forms. She is the author of Arizona Real Estate: A Professional’s Guide to Law & Practice and a regular contributor to the Arizona REALTOR® and the Arizona Journal of Real Estate & Business. Please note that this article is of a general nature and may not be updated or revised for accuracy as statutory or case law changes following the date of first publication. Further, this article reflects only the opinion of the author, is not intended as definitive legal advice and you should not act upon it without seeking independent legal counsel. |
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