The current coronavirus pandemic is wreaking havoc on all aspects of life. From how we shop for groceries to how we socialize, as a society we have taken steps to help reduce risk of the spread of this virus. Although the exact measures may vary for each family, everyone is impacted by COVID-19 — and the real estate market in Texas is no different.
Recent data gathered from real estate database Zillow Group Inc. shows home sales in the Dallas-Fort Worth metropolitan area was down by almost 26%. Sellers also report that they are getting less for their homes. Overall home prices have dropped by almost 5%.
This may lead those who were considering buying or selling their homes to reconsider. For those who have yet to put their homes on the market or enter into negotiations, a decision to wait is relatively easy to execute. This situation is much more complicated for those who have already entered into a real estate contract.
So, can you get out of a real estate contract? The answer depends on the details of the agreement. In order to know, you will need to carefully review the provisions within the contract. Generally, there is not an automatic “cooling off period” when it comes to real estate transactions in Texas. However, there are instances when both parties agree to an “option period.” If this is present within the contract, both parties may have the opportunity to cancel the agreement. If not, there may be repercussions for terminating the agreement. This could include loss of earnest money or other more serious penalties. Skelton Slusher Barnhill Watkins Wells PLLC, has attorneys experienced with real estate matters who can assist you with your contract and help you exercise your rights.