Can a Buyer Cancel a Purchase if there is a Problem?
The short answer is yes, no and maybe? The answer to the question depends on the language of the purchase agreement. If the purchase agreement does not contain a review period or any language that gives the buyer the right to cancel if a problem arises, the buyer may be legally bound to close. Buyers who discover a problem before closing and who do not clearly have the right to cancel a purchase agreement should consult a business attorney immediately to determine their rights. I had a client once that signed a simple contract that said “I will by your widget for $50,000.” My client later decided she did not want to buy the widget. Unfortunately, the client could not unilaterally terminate the contract because it did not contain any conditions or “outs.” The result would have been different if the contract said, for example, “I will buy your widget for $50,000 if I obtain financing satisfactory to me in my sole discretion within ten days of this agreement” and I applied for and was not
