I had decided to terminate a purchase of a house which has already been in escrow for 22 days and decided to give up my deposit. Can the seller refuse to sign the cancellation if they got mad because I’m backing out? There’s no specific problem with the house itself, I just determined I don’t want to buy in that residential area anymore.
I know I can walk away if I don’t care about the deposit. But the problem is, without official cancellation of current escrow, I can’t open escrow to buy another house.
In Connecticut, the rules concerning cancellation of a home purchase are as set forth in the written agreement. Typically, one can cancel without penalty if it is pursuant to the contract contingency provisions. However, when you wish to cancel for an unapproved or unprovided for reason, you are likely to be in default. A typical contract will spell out the parties rights and responsibilities in the event of a default. In the case of a buyer, most agreements provide that the deposit(s) are forfeited and that the agreement is terminated without further legal rights/remedies.
In short, review the Default provisions to determine your next steps.