If you have changed your mind and you are under contract, your earnest money could be at risk.
When you made the offer, you made a promise to buy that particular house. Your course of action may depend on Section 21 of the contract. There are two checkboxes in section 21 of the contract. One is Liquidated Damages, and the other is Specific Performance.
If the checkbox “Specific Performance” is checked. You will want to seriously reconsider. Not only is your earnest money at risk, but the seller could sue for damages, and/or force you to close. This box isn’t checked off too often, usually in a sellers market when many buyers are competing over few houses.
If the checkbox “Liquidated Damages” is checked, your greatest loss is simply the loss of your earnest money. If you wish to terminate because you have changed your mind, you should go and throw yourself at the mercy of the seller. Tell the seller you changed your mind. Maybe you and the seller could come to an agreement on the earnest money and then move on.
Obviously, you could try and get out of the contract under various deadlines, and you could probably be successful, but if you are hiding the real reason, then you are being dishonest.
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Colorado Contract to Buy and Sell Real Estate.
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