You can cancel when in escrow, but there’s a process to follow.
When a seller is in escrow, can they cancel on the buyer? This can be a tricky situation to run into. When a buyer is doing their inspections, they have a contingency period. However, if their time is up, can the seller cancel? Know that the contingencies aren’t automatically removed because they’re past deadline.
If you find yourself in this situation, the one thing you can do is issue a notice to the buyer. According to this contract, the buyer gets 48 hours’ notice. This protects the buyer. Therefore, you can’t cancel immediately. If they don’t perform as they’ve agreed to within 48 hours, then we can unilaterally cancel on them after that point. However, in most cases, sellers will want to figure out what’s going on and try to figure out how to work with them.
This contingency is meant to protect their earnest money deposit, so they can make sure they like the property and get the money for it. If you have any questions about this process or real estate in general, call or email me anytime. I would be happy to help with any of your real estate needs.
