Buyer & Seller Rights Before Closing: Don’t Sign Until You Read This

When it comes to buying or selling a home, most people assume the hard part ends once the offer is accepted. However, the time between acceptance and closing is one of the most critical phases of the real estate process. Both buyers and sellers have specific legal rights and responsibilities that protect them—if they know what to look for. Understanding these rights is key to avoiding disputes, costly delays, or even losing the deal.

1. Full Disclosure is Not Optional

One of the most fundamental rights buyers have is access to full disclosure. This includes any known material defects, renovations without permits, or history of damage (such as mold, flooding, or foundation issues). Sellers are legally required in most jurisdictions to disclose anything that could affect a buyer’s decision to purchase.

Buyers should review these disclosures carefully and follow up with questions or further inspections. Sellers must also avoid concealing problems, as failing to disclose can lead to lawsuits or canceled contracts—even after the sale.

2. Contract Timelines Are Legally Binding

Once a purchase agreement is signed, the deadlines listed within it become binding. Buyers must fulfill obligations like inspections, mortgage approvals, and earnest deposit payments on time. Likewise, sellers are bound to vacate the home, complete repairs, and allow property access as agreed.

Both parties should track these timelines closely. Missing even one deadline—without proper written extension—can be considered a breach of contract. In some cases, this can allow the other party to walk away or seek damages.

3. Contingencies Offer Protection—Use Them Wisely

Contingencies are legal tools that offer an “exit strategy” if certain conditions aren’t met. Common examples include home inspection contingencies, appraisal contingencies, and financing contingencies.

Buyers have the right to withdraw from the deal if the home fails inspection or the appraisal comes in low—without losing their earnest money. Sellers, on the other hand, are protected by contingencies like buying their next home or requiring the buyer to meet loan approval by a certain date.

Contingencies must be clearly written in the contract, and both parties should understand how they work before proceeding.

4. Earnest Money Is Not Automatically Forfeited

When buyers put down earnest money, it signals serious intent. However, many people wrongly believe this deposit is automatically lost if a deal falls through. In reality, buyers are protected by contingencies. As long as they cancel within the contractual rights (due to financing failure, inspection issues, or unmet terms), their deposit should be refunded.

Sellers are entitled to keep the earnest money only if the buyer breaches the contract unjustly. It's critical that both parties read the terms of the deposit refund policy, typically outlined in the purchase agreement.

5. Legal Review Is a Right, Not a Luxury

Before closing, both buyers and sellers have the right to legal representation. An experienced real estate attorney can review closing documents, help interpret confusing language, and ensure compliance with state and local laws. While not mandatory in every area, legal counsel is especially important in complex sales or when red flags arise.

In addition to an attorney, working with a qualified real estate agent can offer essential guidance. They ensure contractual obligations are met and help mediate negotiations should conflicts occur near closing.

Conclusion: Knowledge Is Your Strongest Contract

Real estate transactions can be emotional and complex. But knowing your legal rights before closing protects you from surprises that could derail your goals. Whether you’re buying your first home or selling a long-time property, don’t rush through the final steps. Read everything. Ask questions. Seek legal and professional support.

Remember—what happens before you sign on the dotted line is just as important as what happens after.