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There's a lot that can happen during the course of a real estate sale, and you want to be as prepared as you possibly can be for any scenario that might come your way. Being blindsided by something like cracks in the foundation of your home or having an offer retracted by a prospective buyer are never good things to happen anytime, but if you can prepare yourself for such events happening they'll be easier to manage.
For now we want to focus our attention on offer retractions so that you will know what happens if an offer on your condo or home is retracted by the bidder. There's a saying when it comes to contracts that goes something like this: "signed, sealed, delivered." You've probably heard it before and it's true. Unless both parties sign a contract then nothing becomes official, be it a contract to purchase a condo or a recording contract.
In the world of real estate buyers are allowed to change their minds and if they previously submitted a bid on a new home that you're selling they also have the right to rescind their offer as if nothing had happened. If you didn't accept the offer before it was retracted then there isn't much to worry about in terms of legalities. However, if both parties have already signed a contract then things get a little trickier.
Luckily many offers to purchase real estate contracts are written with clauses or contingencies that are made for instances where offers are retracted. The most common contingencies are made in relation to finances and inspections. If an offer is made on a real estate property in good faith but later down the line there's either a major problem with the home that makes the buyer no longer want to buy the home then they can simply back out of the contract because of the original contingency in place.
The same thing can happen if a term of the contract stated it would go through only if the buyer were to be approved for a certain mortgage. If that mortgage approval never comes through then the clause in the contract kicks in and the offer can be rescinded without penalty. The best thing to do when a buyer wants to rescind their offer is to get together and go over their reasons why and come up with an agreement as to how the offer retraction will work. There may be some fees involved for retracting offers, so make sure to discuss those before moving on.