In Marylandreal estate investment should be done after framing a legal contract, which is signed by the seller and the buyer. The buyer pays fixed amount of money as a security deposit for the real estate property, for which the contract has been framed. The contract includes various important terms like description of the parties, explanation of legal terms and conditions, offer amount that has been decided, and finally the closing date of the Maryland real estate deal. It is advisable to thoroughly go through the terms and conditions listed in the contract before signing it.
Sometimes it becomes necessary to terminate or cancel the real estate contract. Generally a contract does contain a termination clause, which states under what type of situations the buyer can cancel the contract. To safeguard the interest of buyer and seller, the buyer should cancel the contract before the closing date. Otherwise it might create problems for the seller and lead to litigation on the buyer. Following are some common ways to cancel a real estate contract:
- The buyer might not be able to arrange for enough funds to buy a real estate property in Maryland under the prescribed time limit, mentioned in the contract. Under such situations, the buyer should give a written document mentioning that the buyer has made sincere efforts to make money arrangements, but received a written rejection letter from the bank or credit association where the loan application was given.
- If faults or defects are found in title review, the buyer has the right to cancel the contract. He/she should give a written consent to the seller about the title defects that are noticed. In case these defects cannot be dealt with, cancel the real estate contract.
- Usually inspection related issues lead to cancellation of a real estate contract in Maryland. Problems like excess of repair required by the property exceeding a particular amount of money, unnecessary encroachments on the property and so on could be the reasons for contract termination.
The buyer should keep in mind the time frame that has been listed in the real estate contract. If the contract is cancelled after that time, it could lead to non-cancellation of the Maryland real estate deal. Hiring a good professional realtor can help the buyer to locate a real estate property that meets his expectations, and has a genuine seller. And the buyer can use their right of termination in case of any serious property related issues.
