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I’m Under Contract Can I Still Back Out of Buying This House?

Going under contract on a home is an exciting milestone especially for first-time buyers. But what happens if something changes? Are you stuck, or do you still have options?
Going under contract on a home is an exciting milestone especially for first-time buyers. But what happens if something changes? Are you stuck, or do you still have options?

Good news: Being “under contract” doesn’t always mean the deal is final. In many cases, buyers can cancel as long as it’s done properly and within the rules of the contract.


Here’s what every first-time homebuyer in Queens and Long Island should know:


✅ Your Contract Controls Everything

Every purchase agreement has contingencies and deadlines that outline when you can cancel and what the consequences might be. Missing a deadline can cost you your protections—so always stay on top of the timeline.


🔍 1. Inspection Contingency

If your inspection uncovers major issues and you can’t come to an agreement with the seller on repairs or credits, this contingency may allow you to walk away without losing your deposit.

Common deal breakers include:


  • Structural issues

  • Roof damage

  • Unsafe electrical or plumbing systems

  • Environmental hazards


🏦 2. Mortgage/Financing Contingency

If you apply for a loan in good faith but are denied financing, most contracts allow you to cancel. This protects you from being forced to buy a home you can’t secure a mortgage for.


📉 3. Appraisal Contingency

If the home appraises for less than the purchase price and the seller won’t renegotiate, an appraisal contingency can give you an “out.”This is especially important in competitive New York markets where bidding wars push prices up.


⚖️ 4. Attorney Review & Title Issues

In New York, it’s normal for deals to include:

  • Attorney review periods, or

  • Clear title requirements

If your attorney disapproves or title problems can’t be resolved within the contract timeframe, you may have a valid reason to cancel.


⏰ 5. Deadlines Matter

Even the best contingencies don’t work if you miss the window. Once deadlines pass, you may lose your ability to cancel without penalty.


😬 6. Cold Feet Is Different

Simply changing your mind isn’t usually protected. Canceling for emotional reasons without a contract-based contingency may result in losing your earnest money deposit.


💵 7. Expect Some Costs Either Way

Even if you cancel properly, you typically won’t get back:

  • Inspection fees

  • Appraisal fees

  • Attorney fees

These are part of the cost of due diligence.


✍️ 8. Never Ghost the Deal

Cancellations must be done in writing, sent the right way, and within the required time frame. Failing to follow the contract procedures can cost you thousands.


🌟 Need Help Understanding Your Options?

If you’re a first-time homebuyer in Queens or Long Island and you’re unsure about a deal you’re already in, the LJ Realty Team can help you understand:

  • Your contract

  • Your protections

  • Your next steps

We work hand-in-hand with your attorney and guide you through every phase so you can make confident decisions before and after going under contract.


📲 Contact LJ Realty Team today to review your home buying plan and learn how to protect yourself at every stage.


📍 LJ Realty Team – Your Local Guide to Homeownership!

127-03 Rockaway Blvd South Ozone Park, NY 11420

(516) 218-1297

LJ Realty Team Buy • Sell • Rent Equal Housing Opportunity

LJ Mortgage Team Inc. – NMLS# 2120286Purchase & Refinance NYS Registered Mortgage Broker Broker arranges mortgage loans with third-party providers. Mortgage Broker Only – Not a Lender. Licensed by the N.J. Department of Banking and Insurance. We Do Not Make Any Mortgage Loan Commitments Or Fund Any Mortgage Loans. NMLS ID #2120286 (www.nmlsconsumeraccess.org)


 
 
 

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