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Can I back out of a home purchase after my offer is accepted?

Updated May 8, 2026
Quick Answer

In some situations, buyers may cancel a purchase without losing their deposit if contingencies are still in place. Once contingencies are removed, backing out may put part or all of the deposit at risk.

Full Explanation

Whether a buyer can cancel a home purchase depends largely on the contract terms and the status of contingencies. During the contingency period, buyers typically have the right to back out due to issues related to inspections, financing, or other agreed-upon conditions without losing their earnest money deposit. However, once contingencies are formally removed, canceling the transaction can become more complicated.

In Sherman Oaks and throughout California, purchase agreements contain important legal protections and deadlines that buyers should fully understand before signing. Buyers should always discuss concerns with their realtor and, if needed, seek legal advice before making major contractual decisions. Understanding contingency timelines and contractual obligations is essential to protecting both your finances and your negotiating position during the transaction process.

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