The confusion, Mary, is that you are talking about two different things.
A contract to purchase a property does not have a three day right of recission. However, getting a loan to PURCHASE or REFINANCE is governed by another area of the law and here there is a three day right to rescind.
If you think about it, there is no good reason for a three day right of recission for a purchase contract. If you want to hedge your bets, you just write in a contingency.
Hi! I was at a house auction on October 20th in NJ, I was not the highest bidder on the house and am regretting it terribly. The house was auctioned that day, a contract was to be signed by the seller and the highest bidder that day, is it too late to offer the seller more money for the house. She took a lose at the auction, but it was done through a real estate agent, the seller does not have to pay the broker fee, the buyer does, so the seller wouldn’t lose her money and if she accepts a higher bid, the original high bidder wouldn’t lose there money? I hope that makes enough sense to you, please let me know anything that you can. It was my understanding that people had 3 days to get out of any kind of contract.
Re: Can a contract be broken - Posted by bill s. (Ohio)
Posted by bill s. (Ohio) on October 23, 2001 at 05:49:40:
Megan, there is no three day ‘back out’ period for real estate contracts—only consumer goods and even that is being limited in some states. What you are wanting to do is unethical and I think you know that. If you induce the seller to break the contract, the seller can be sued for the breach of the contract and you also can be sued in tort for contract interference. It’s best at this point to just live and learn. This deal got away, but there will be plenty of others just over the hill.
No 3 days “back out” on RE contracts? I just refinanced my home and had to pay 3 extra days interest to the old mortgage holder because I “have 3 days after closing to rescind.” I am confused.