Can I Cancel My Real Estate Contract? What It Really Takes (and Costs)

Here’s a plain-English guide to the six most common “I want out” situations I see, plus what each party can usually do next and where money is at risk. This is general info—not legal advice—so always check your state’s forms and deadlines.

1) Seller wants to fire their listing agent

• Who holds your contract? The brokerage, not the individual agent. The broker must approve any cancellation.

• What to do: Contact the broker named on the last page of your listing agreement. Be specific about non-performance and that you don’t wish to remain with the brokerage.

• What it may cost: Some brokerages ask to be reimbursed for photos/marketing or may request a fee. Long listing terms can trap you—aim for ~90 days up front.

2) Buyer is missing deadlines (seller wants leverage or out)

• Key concept: Contingencies = “only if” clauses (inspection, appraisal, loan). Buyers must perform within the contract timeline.

• Seller tool: Notice to Perform (often 48 hours). If the buyer still doesn’t comply, the seller may cancel.

• Earnest money: Even before formal contingency removal, a non-performing buyer can jeopardize their deposit. Release usually requires mutual written instructions.

3) Closing day arrives and the buyer won’t close

• Seller tool: Demand to Close. Typically gives the buyer 3 days.

• If they still don’t close: Seller can cancel, relist, and the deposit stays parked with escrow/title until both sides agree—or it goes to mediation/arbitration per the contract.

4) Seller gets cold feet after accepting your offer

• Buyer tool: Consider suing for specific performance and recording a lis pendens so the property cannot be sold to someone else until the dispute is resolved. Move fast and consult an attorney.

5) Buyer signed a representation agreement and wants to switch agents

• Who to contact: The broker, not just the agent. Explain why you want out. Expect to be held to the agreement term unless the broker releases you. When in doubt, keep buyer-agent terms short (30–90 days).

6) Buyer “ghosts” during their contingency period

• If no inspections, no lender progress, no replies: After the contingency window, seller issues a Notice to Perform. If the buyer still does nothing, seller can cancel and may have a claim to some or all of the deposit for non-performance.

Pro tips to avoid messy exits

• Short terms: Keep listing and buyer-broker agreements to ~90 days if you’re unsure.

• Calendar everything: Inspection, appraisal, and loan dates should be on a shared timeline from day one.

• Ask for extensions early: Put them in writing before deadlines pass.

• Use credits, not repairs: If issues pop up, a closing credit is cleaner than managing workmanship disputes.

• Choose pros carefully: Experienced lenders, inspectors, escrow/title, and agents reduce deadline drama.

Quick disclaimer

Contracts, timelines, notices, and remedies vary by state and by form library. This article reflects common California practices but the general concepts apply widely. Talk to your agent and, if needed, a real estate attorney before taking action.