The real estate contract in Virginia differs from one another based on the jurisdiction and the individual negotiation of the real estate contract. Most of the real estate contract are written with contingencies that enables the buyer to cancel a real estate contract under particular conditions only. Therefore, a buying party could never cancel a real estate contract just because they have not properly made their mind before signing it or else they would be facing some consequences for the breach of contract, which would be mostly in form of monetary damages.
As a buyer, you are usually required to submit a substantial amount in form of the security deposit as you make an offer on a property. This deposit would be credited towards your down payment in case successful real estate transaction or would be returned back to you if the real estate contract is cancelled over a legitimate reason. If as a buyer, you decides to cancel a real estate contract without meeting the terms of cancellation mentioned in the agreement, there would be a certain possibility that you would have to lose some or all of your deposited money. The only possibility could allow a buyer to cancel a real estate contract without suffering from financial losses is to act according to the contingencies that are generally included in the terms of the real estate contract and needs to be fulfilled by a predefined date. Only if one or more of these contingencies are not satisfied as per the agreed terms, than a buying party would have the authority to cancel the contract without losing their deposit money.
A few of the common contingencies that are usually included in a real estate contract are associated with a predefined period of time to analyze condominium or documents of property holder association, a satisfactory inspection of the property, an appraisal as a lender would not offer financing above the appraised value of the property, unavailability of financing such as if the mortgage loan is not approved or a title defect revealed after the title survey. On the basis of any of such contingencies, a buyer can cancel a real estate contract and the deposit money would be returned in full. In the most circumstance, the sellers and the buyers negotiate over a dispute that could arise during the inspection of the property or might renegotiate the real estate contract if the appraisal turns out to be short.
In a few cases, buyers deliberately make the use of contingencies related to home inspection or review of documents as an option to cancel a real estate contract in case they change their mind and do not wish to lose their deposit money. However, it is always recommended to think thoroughly and make certain that you wish to buy the property and have sufficient finances before signing a contract. Otherwise it is most possible that you would be held accountable for breaching the contract and the seller could confiscate your deposit and might sue you for any further monetary losses.