Backing out after signing is only possible in limited situations, such as when a buyer misses deadlines, fails to meet contingencies, or you have a specific cancellation right in the contract. Walking away without a valid contractual reason can expose you to legal claims, specific performance demands, and liability for

As a seller, you typically sign the deed, settlement statement, closing disclosures, affidavits (such as no-lien or occupancy statements), and any payoff or release documents required by your lender and title company. In some states you may also sign local transfer forms or tax declarations. Your closing agent will explain

A purchase contract spells out price, deadlines, contingencies, included items, financing terms, and what happens if either side defaults. Read it section by section, paying special attention to dates, repair obligations, contingency periods, and any addenda that modify standard terms. Your agent and, when needed, a real estate attorney can

Earnest money is a deposit buyers make with their offer to show they are serious about purchasing the home. It’s usually held in an escrow account and later applied to the buyer’s down payment or closing costs if the sale closes. If the buyer properly cancels under a contingency, they

A seller may keep earnest money if the buyer breaches the contract without a valid contingency or misses key deadlines without agreed extensions. If the buyer simply changes their mind outside contingency periods, the contract often allows the seller to claim the deposit as damages, subject to local law and

A liquidated damages clause sets an agreed amount or cap—often the earnest money—that the seller can keep if the buyer breaches the contract without legal excuse. It’s designed to avoid fights over actual damages by predefining the seller’s remedy, subject to limits under state law. Not all contracts use this,