Buying a house is one of the most significant financial decisions a person can make, and it’s not uncommon for buyers to experience a change of heart or encounter unforeseen circumstances that lead them to cancel the purchase.
Whether you’ve found a more suitable property, encountered financial difficulties, or discovered hidden issues with the house, knowing how to write a clear and effective cancellation letter is crucial.
Sample Letters to Cancel House Purchase
To help you navigate this process with confidence and professionalism, we have compiled 15 sample letters that address various scenarios, providing you with the tools to communicate your intentions effectively and minimize potential legal and financial repercussions.
Letter 1
Subject: Cancellation of House Purchase – [Property Address]
Dear [Seller’s Name],
I am writing to formally notify you of my decision to cancel the purchase of the property located at [Property Address]. As per the terms of our purchase agreement, I am exercising my right to terminate the contract within the specified contingency period.
After careful consideration, I have determined that the property does not meet my needs and expectations. I kindly request that you acknowledge this cancellation and return any earnest money deposit as outlined in our agreement.
Please provide me with written confirmation of the cancellation and the refund of my deposit for my records.
Thank you for your understanding and cooperation in this matter.
Sincerely,
[Your Name]
[Your Address]
[Contact Information]
Letter 2
Subject: Termination of House Purchase Agreement – [Property Address]
Dear [Seller’s Name],
I regret to inform you that I must terminate the purchase agreement for the property located at [Property Address], effective immediately. During the home inspection, significant issues were discovered that were not previously disclosed, and I am no longer comfortable proceeding with the purchase.
As per the terms of our agreement, I am entitled to cancel the contract due to the unsatisfactory inspection results. I kindly request that you release me from any further obligations and return my earnest money deposit in full.
Please acknowledge this termination in writing and provide me with confirmation of the refund of my deposit.
Thank you for your prompt attention to this matter.
Sincerely,
[Your Name]
[Your Address]
[Contact Information]
Letter 3
Subject: Cancellation of House Purchase – Financing Issues – [Property Address]
Dear [Seller’s Name],
I am writing to inform you of my decision to cancel the purchase of the property located at [Property Address] due to unforeseen financing issues. Despite my best efforts, I have been unable to secure the necessary mortgage financing to complete the transaction.
As per the financing contingency clause in our purchase agreement, I am exercising my right to terminate the contract. I kindly request that you acknowledge this cancellation and return any earnest money deposit as outlined in our agreement.
Please provide me with written confirmation of the cancellation and the refund of my deposit for my records.
Thank you for your understanding and cooperation in this matter.
Sincerely,
[Your Name]
[Your Address]
[Contact Information]
Letter 4
Subject: Termination of House Purchase – Appraisal Contingency – [Property Address]
Dear [Seller’s Name],
I regret to inform you that I must terminate the purchase agreement for the property located at [Property Address] due to the results of the appraisal. The appraised value of the property is significantly lower than the agreed-upon purchase price, and I am unwilling to proceed with the transaction under these circumstances.
As per the appraisal contingency clause in our agreement, I am entitled to cancel the contract if the property does not appraise at or above the purchase price. I kindly request that you release me from any further obligations and return my earnest money deposit in full.
Please acknowledge this termination in writing and provide me with confirmation of the refund of my deposit.
Thank you for your prompt attention to this matter.
Sincerely,
[Your Name]
[Your Address]
[Contact Information]
Letter 5
Subject: Cancellation of House Purchase – Change in Employment – [Property Address]
Dear [Seller’s Name],
I am writing to inform you of my decision to cancel the purchase of the property located at [Property Address] due to a sudden change in my employment situation. Regrettably, I have recently lost my job, and I am no longer in a financial position to proceed with the purchase.
As per the terms of our purchase agreement, I am exercising my right to terminate the contract due to this unforeseen circumstance. I kindly request that you acknowledge this cancellation and return any earnest money deposit as outlined in our agreement.
Please provide me with written confirmation of the cancellation and the refund of my deposit for my records.
Thank you for your understanding and cooperation in this matter.
Sincerely,
[Your Name]
[Your Address]
[Contact Information]
Letter 6
Subject: Termination of House Purchase – Seller Disclosure Issues – [Property Address]
Dear [Seller’s Name],
I regret to inform you that I must terminate the purchase agreement for the property located at [Property Address] due to discrepancies in the seller’s disclosure statement. Upon further investigation, I have discovered material facts about the property that were not accurately disclosed, and I am no longer comfortable proceeding with the purchase.
As per the terms of our agreement, I am entitled to cancel the contract due to the seller’s failure to provide accurate and complete disclosure. I kindly request that you release me from any further obligations and return my earnest money deposit in full.
Please acknowledge this termination in writing and provide me with confirmation of the refund of my deposit.
Thank you for your prompt attention to this matter.
Sincerely,
[Your Name]
[Your Address]
[Contact Information]
Letter 7
Subject: Cancellation of House Purchase – Unsatisfactory Title Search – [Property Address]
Dear [Seller’s Name],
I am writing to inform you of my decision to cancel the purchase of the property located at [Property Address] due to issues discovered during the title search. The title report has revealed encumbrances and liens on the property that were not previously disclosed, and I am unwilling to assume these liabilities.
As per the title contingency clause in our purchase agreement, I am exercising my right to terminate the contract. I kindly request that you acknowledge this cancellation and return any earnest money deposit as outlined in our agreement.
Please provide me with written confirmation of the cancellation and the refund of my deposit for my records.
Thank you for your understanding and cooperation in this matter.
Sincerely,
[Your Name]
[Your Address]
[Contact Information]
Letter 8
Subject: Termination of House Purchase – Homeowners Association Restrictions – [Property Address]
Dear [Seller’s Name],
I regret to inform you that I must terminate the purchase agreement for the property located at [Property Address] due to unacceptable restrictions imposed by the Homeowners Association (HOA). After reviewing the HOA bylaws and covenants, I have determined that the limitations on property use and modifications are not compatible with my intended use of the property.
As per the terms of our agreement, I am entitled to cancel the contract if the HOA restrictions are deemed unsatisfactory. I kindly request that you release me from any further obligations and return my earnest money deposit in full.
Please acknowledge this termination in writing and provide me with confirmation of the refund of my deposit.
Thank you for your prompt attention to this matter.
Sincerely,
[Your Name]
[Your Address]
[Contact Information]
Letter 9
Subject: Cancellation of House Purchase – Contingent Sale Failure – [Property Address]
Dear [Seller’s Name],
I am writing to inform you of my decision to cancel the purchase of the property located at [Property Address] due to the failure of my contingent sale. As outlined in our purchase agreement, my ability to complete the transaction was contingent upon the successful sale of my current home.
Unfortunately, the sale of my home has fallen through, and I am no longer in a position to proceed with the purchase of your property. As per the terms of our agreement, I am exercising my right to terminate the contract.
I kindly request that you acknowledge this cancellation and return any earnest money deposit as outlined in our agreement.
Please provide me with written confirmation of the cancellation and the refund of my deposit for my records.
Thank you for your understanding and cooperation in this matter.
Sincerely,
[Your Name]
[Your Address]
[Contact Information]
Letter 10
Subject: Termination of House Purchase – Zoning Issues – [Property Address]
Dear [Seller’s Name],
I regret to inform you that I must terminate the purchase agreement for the property located at [Property Address] due to zoning issues that were not previously disclosed. Upon further investigation, I have discovered that the property’s current zoning classification does not allow for my intended use of the property.
As per the terms of our agreement, I am entitled to cancel the contract if any undisclosed zoning restrictions materially affect the property’s value or use. I kindly request that you release me from any further obligations and return my earnest money deposit in full.
Please acknowledge this termination in writing and provide me with confirmation of the refund of my deposit.
Thank you for your prompt attention to this matter.
Sincerely,
[Your Name]
[Your Address]
[Contact Information]
Letter 11
Subject: Cancellation of House Purchase – Survey Encroachments – [Property Address]
Dear [Seller’s Name],
I am writing to inform you of my decision to cancel the purchase of the property located at [Property Address] due to encroachments discovered during the property survey. The survey has revealed that a portion of the neighboring property’s structures encroach upon the property I intended to purchase, which could lead to potential legal disputes in the future.
As per the survey contingency clause in our purchase agreement, I am exercising my right to terminate the contract. I kindly request that you acknowledge this cancellation and return any earnest money deposit as outlined in our agreement.
Please provide me with written confirmation of the cancellation and the refund of my deposit for my records.
Thank you for your understanding and cooperation in this matter.
Sincerely,
[Your Name]
[Your Address]
[Contact Information]
Letter 12
Subject: Termination of House Purchase – Seller’s Failure to Make Repairs – [Property Address]
Dear [Seller’s Name],
I regret to inform you that I must terminate the purchase agreement for the property located at [Property Address] due to your failure to make the agreed-upon repairs. As per our agreement, you were required to complete specific repairs before closing, but these repairs have not been satisfactorily completed.
As a result of this breach of contract, I am exercising my right to cancel the purchase. I kindly request that you release me from any further obligations and return my earnest money deposit in full.
Please acknowledge this termination in writing and provide me with confirmation of the refund of my deposit.
Thank you for your prompt attention to this matter.
Sincerely,
[Your Name]
[Your Address]
[Contact Information]
Letter 13
Subject: Cancellation of House Purchase – Environmental Concerns – [Property Address]
Dear [Seller’s Name],
I am writing to inform you of my decision to cancel the purchase of the property located at [Property Address] due to environmental concerns discovered during the due diligence period. The environmental report has revealed the presence of hazardous materials on the property, which poses a significant health risk and requires costly remediation.
As per the environmental contingency clause in our purchase agreement, I am exercising my right to terminate the contract. I kindly request that you acknowledge this cancellation and return any earnest money deposit as outlined in our agreement.
Please provide me with written confirmation of the cancellation and the refund of my deposit for my records.
Thank you for your understanding and cooperation in this matter.
Sincerely,
[Your Name]
[Your Address]
[Contact Information]
Letter 14
Subject: Termination of House Purchase – Seller’s Failure to Provide Clear Title – [Property Address]
Dear [Seller’s Name],
I regret to inform you that I must terminate the purchase agreement for the property located at [Property Address] due to your inability to provide a clear and marketable title. The title search has revealed unresolved liens and encumbrances on the property, which you have failed to address and clear within the specified timeframe.
As per the terms of our agreement, I am entitled to cancel the contract if the seller is unable to deliver a clear title. I kindly request that you release me from any further obligations and return my earnest money deposit in full.
Please acknowledge this termination in writing and provide me with confirmation of the refund of my deposit.
Thank you for your prompt attention to this matter.
Sincerely,
[Your Name]
[Your Address]
[Contact Information]
Letter 15
Subject: Cancellation of House Purchase – Seller’s Misrepresentation – [Property Address]
Dear [Seller’s Name],
I am writing to inform you of my decision to cancel the purchase of the property located at [Property Address] due to material misrepresentations made by you during our transaction. Upon further investigation, I have discovered that you knowingly provided false information regarding the property’s condition and history.
As a result of this breach of trust and contract, I am exercising my right to terminate the purchase agreement. I kindly request that you acknowledge this cancellation and return any earnest money deposit as outlined in our agreement.
Please be advised that I reserve the right to seek legal recourse for any damages incurred as a result of your misrepresentation.
Please provide me with written confirmation of the cancellation and the refund of my deposit for my records.
Sincerely,
[Your Name]
[Your Address]
[Contact Information]
Conclusion
Canceling a house purchase is a significant decision that requires careful consideration and clear communication with the seller. By using these sample letters as a guide and adapting them to your specific circumstances, you can ensure that your cancellation is handled professionally and following the terms of your purchase agreement.
Remember to provide a valid reason for your cancellation, refer to the relevant contingencies and clauses in your contract, and request written confirmation of the cancellation and the refund of your earnest money deposit.
By maintaining a firm but respectful tone in your correspondence, you can protect your interests and minimize the potential for legal disputes.
Ultimately, the key to successfully canceling a house purchase lies in being well-informed, proactive, and transparent throughout the process.
By taking the time to craft a clear and concise cancellation letter, you can move forward with confidence, knowing that you have effectively communicated your decision and safeguarded your financial and legal well-being.
