Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Can a buyer withdraw from a contract if the seller has accepted their offer?

1. Yes, with a three-day grace period

2. Yes, without any conditions

3. No, it depends on the contract terms

4. No, they must wait for an option period

The correct answer is: No, it depends on the contract terms

In real estate transactions, the ability for a buyer to withdraw from a contract after the seller has accepted their offer largely depends on the specific terms outlined in that contract. Once a seller accepts an offer, a legally binding agreement is formed, and both parties are expected to adhere to its conditions. If the contract includes a provision allowing the buyer to back out under certain circumstances—such as a financing contingency or an inspection contingency—the buyer may withdraw based on those agreed-upon terms. If there is no such provision that permits withdrawal at will, then the buyer may not be able to terminate the contract without facing potential legal consequences or forfeiting their earnest money deposit. Thus, understanding the explicit terms of a contract is crucial for both buyers and sellers, as these terms dictate the rights and responsibilities of each party. In situations where there are no stated contingencies or provisions for cancellation, the buyer is generally bound to proceed with the transaction.