Contracts

A South Carolina buyer is under contract to purchase a home but wants to back out after the inspection period has expired. The buyer:

AMay freely cancel the contract at any time before closing
BMay be in breach of contract and could lose the earnest money deposit✓ Correct
CMay cancel with 24-hour notice to the seller
DMust be allowed to cancel because all contracts have a 72-hour right of rescission

Explanation

Once the inspection period expires, the buyer is generally bound by the contract. Withdrawing without a valid contractual basis after the inspection period could constitute a breach of contract, potentially resulting in forfeiture of the earnest money deposit.

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