When Breaking a Contract Feels Personal
A recent Reddit post tells the story of a buyer who was under contract to purchase a home but faced a sudden financial setback. Days before closing, they realized they could no longer follow through and asked their friend, who was also their real estate agent, for advice on breaking the contract.
What followed was a panic-inducing conversation. The agent allegedly warned that the buyer might be sued for damages and suggested they offer more than the $3,000 earnest money already at stake. In a panic, the buyer offered an additional $4,000. The sellers then requested even more money, and the buyer feared they had no choice but to agree.
The Internet Reacts
Reddit users responded with near-universal concern. The top comments criticized the agent for pressuring the buyer and for offering legal advice without being a lawyer. Several real estate professionals chimed in to say that earnest money exists to protect buyers and sellers in cases like this. Most agreed that unless the contract states otherwise, the earnest money is typically the only amount a buyer forfeits when breaking the contract.
The advice was clear: never offer more money without understanding your contract and consulting a real estate attorney.
What I Would Advise
This story hits close to home because I have written before about the risks of working with friends or family in real estate. If you missed that post, you can read it here: Mixing Friends and Homes Rarely Ends Well.
In this case, I think the buyer made a mistake by not immediately calling an attorney. When you are just days from closing and you need to cancel, there is too much at stake to rely solely on your real estate agent, even if they are a friend. Every real estate contract is different, and each state has unique laws that affect how contracts are enforced.
You Might Have More Options Than You Think
There may be legitimate reasons a buyer can cancel a contract and keep their earnest money. For example, a financing contingency might still apply if a lender denies the loan. Sometimes even a sudden job change or relocation is reason enough. An experienced attorney can help you find these options. Most importantly, they can ensure that you do not overpay just because you are being pressured or scared into it.
Is Your Agent Looking Out for You or Themselves?
The bigger issue here is trust. If your agent is pushing you to buy a house you cannot afford or suggesting that you offer more money to get out of a deal, that is a problem. It might be coming from a place of fear on their part, they may be trying to protect their commission, but that is not what you need in a moment of crisis.
A real estate agent’s job is to advise, not to pressure or to practice law. They should be helping you find the right resources and giving you room to make informed decisions.
Final Thoughts
If you are in a situation where you need to cancel a real estate deal, speak to a qualified real estate attorney. Yes, it will cost you some money, but it might save you thousands in the long run. A lawyer can review your contract and help you understand your obligations and your options.
When emotions are high, and the stakes are even higher, you need professional guidance. Do not rely on Reddit or your agent’s gut instincts alone. Know your rights, understand your contract, and protect your future.
Need a Trusted Real Estate Expert?
If you need help connecting with a real estate agent or a real estate attorney in your area, I can help. Reach out and I will gladly connect you with someone who can guide you through your specific situation with expertise and care.
