Buyer Contingencies

 

Here are some reasons that the buyer can back out and get their earnest money back. This is not an exhaustive list but these are some of the common terms that are being negotiated in the offer.

• Option Period: Buyers can back out for ANY reason
  
  

• Buyer Approval Contingency: Buyers have to get their financing approved within this time period. This includes meeting certain financial qualifications, property appraisal, and home condition. If they don't get approved within this time period, they can back out of the contract without any penalty. This includes meeting certain financial qualifications for the buyer, property appraisal, and home condition.
  
  

• HOA Information: The buyer must receive HOA documents (bylaws, restrictions, etc.) within this time period. If this information is not provided within the time frame, they can back out. After receiving the HOA documents, the buyer has a 3 day option to terminate the contract, which is standard for Texas contracts.