House Buying Drama: Cancelling a Deal That Your Partner Made

Buying a home should be a special and exciting event. There is almost nothing as rewarding as stepping foot into a house that you can call yours for the first time…that is unless it is a house you didn’t want in the first place. This video shows a couple fighting over purchasing a house made with “shared” money. Thus, can you cancel a deal your partner made with your money?

The clip begins by showing a woman arguing with her partner, who is filming. They are both standing in a newly purchased house, which she is arguing that he bought using 75% of her money. She appears very angry, and it is clear that she had little to no say in purchasing the house. Her boyfriend argues that it was bought with shared money, but she is uninterested in entertaining his claims. She even explains that they aren’t married, claiming this type of spending is highly inappropriate. The clip ends with her walking out in anger.

Can This Real Estate Transaction Be Undone? 

According to Attorney Ugo Lord, it can be incredibly difficult to reverse or cancel a real estate transaction after it is completed. For the woman in this situation to cancel the deal, she would have to prove that fraud occurred in some form. Unfortunately, it appears as though her partner had full access to a joint bank account. This means their money was shared and open.

Lord also points out that legally, she would not be able to reverse the deal as it would go against the sales contract with the seller. Canceling the sales agreement would not be in the seller’s best interest, making it practically impossible to do it outright absent a breach by the seller.

What Can The Woman Do? 

Even though undoing the sale would be difficult, there are a few courses of action that the woman can take. Firstly, if the sale was recently made, she may be able to talk to the seller and find some way for the seller to agree to cancel the deal. In most real estate transactions, this requires the written approval of both parties. Thus, it will probably be really hard to cancel a deal your partner made.

If that strategy does not work, the woman can sue her partner for using her money without permission. If she can prove that he used her money without her permission or consent, she may be entitled to any losses he caused. Likewise, if her name is on the house title, she may also be able to force the house to be listed again to try and regain her lost capital. 

Can Real Estate Transactions Be Cancelled? 

Real estate transactions can be tricky to cancel, in part due to their numerous contracts and special laws. The real estate world can be jam-packed with disagreements, from renting to home-buying scenarios. That said, there are a few special incidents in which one can legally cancel a real estate action. Most of these solutions must occur with planned contingencies or before signing and closing sales to work. 

Pre-Determined Contract Clauses 

A seller or buyer can typically cancel a real estate contract if pre-determined clauses exist. For instance, some contracts may outline that the buyer can back out if:

• An appraisal comes back with a lower value than the asking price. 
• If the buyer is unable to secure a purchase for their current home. 
• If a home inspection uncovers glaring issues.
• If errors or other parties are discovered to hold title to the home. 

Breaches of Contract 

Another way in which one can cancel a deal that your partner made is if one party breaches the rules of the contract. One party failing to complete the duties described in their part of the contract is grounds for canceling the sale. A seller refusing to let an inspector see the house would breach a typical real estate contract. 

Mutual Consent 

In many real estate transactions, mutual consent is another way in which deals can be canceled or altered. Many agreements see changes in their rules and obligations, usually when things like appraisals and inspections are completed. Having the seller and buyer agree in writing to cancellation is another way to alter a real estate contract. 

What Can Happen If You Back Out of a Deal 

Assuming you can legally cancel a deal your partner made, several possibilities can happen. In many cases, unless it is specifically stated by your seller or in a contingency clause, sellers are often entitled to keep your earnest deposit if you back out. While that doesn’t sound like a lot of money, many earnest deposits can range from $4000 to $8,000 dollars on average.

In the worst cases, the seller can also seek legal action against the buyer. If there is a true breach of contract done in canceling the deal, the seller can sue for damages, usually resulting in a monetary award.