PRIMARY RESIDENCE UNDER CONTRACT – CAN YOU GET OUT?

True or False:  You can’t force Grandma to close on her Homestead Property once it’s gone Under Contract.

Answer:  Read the Contract. 

Real Estate Contracts mean something.  Terms make a big difference.  And nuances can have more impact than Grandma’s fudge brownies.  Once the Seller goes Under Contract, then the Seller is subject to the Terms of that Contract and all its nuances, even with a Primary Residence.  

Before you grab a second helping of the notion that there’s an “out” for a Seller Under Contract on a Primary Residence, check your appetite for inaccuracy and dealing in disappointment.  Do not lie to Grandma, and do not tell her she can always change her mind if that’s not specifically written in the Real Estate Contract.  

And from the Buyer’s side:  make sure you get Title Insurance!  As the innocent Buyer, you don’t know what Grandma got told, and she may come after you.  It’s a common misconception that a homestead Seller can get “out” once they’re Under Contract.  As the Buyer, this common misconception can cost an uncommon fortune in legal fees to defend your legitimate title to the property.  Remember:  it’s expensive to be right!  For a small, one-time fee at closing a Title Insurance Policy unfolds into a legal team to defend your ownership rights against Grandma and whatever she got told.  

From Land Title Talk Podcast -- https://studio.youtube.com/video/6lQ2lzkDNvM/edit

September 17, 2025

Content by Stephen Collins and CJ Godwin