Under Contract but Having Second Thoughts Before Deposit

[Ferdia Kenny]

Hi everyone,

I recently signed an agreement of sale for a single-family home in Philadelphia. The seller just signed the contract as well, so I understand we are now technically under contract.

The agreement is contingent on inspection. After thinking it over more carefully, I’ve realized I may not actually want to move forward with the property. My concern is that paying for the inspection may just be a waste of money if I already know I’m leaning toward backing out.

One important detail: I have not yet paid the 1% initial deposit.

My question is: if the contract has been signed by both parties but I have not yet submitted the initial deposit, is there any way to cancel before paying that deposit? Or would I still need to follow the inspection-contingency process and formally terminate after the inspection period begins?

I understand this may depend on the exact contract language, and I’ll speak with my agent, but I’d appreciate any practical insight from people who have dealt with this before in Pennsylvania.

Thanks.

[Alan Asriants]

Quote from @Stuart Udis:

What has you less enthusiastic about this property now before conducting any diligence?

 This is the first question I would ask too. That being said if you don't submit your deposit and box 26G in the standard agreement of sale is check off (Seller is limited to retaining those sums paid by buyer...) then you are not liable for anything if you don't submit a deposit - however that is a bad look. But its better than continuing to waste time in the deal.