Q. Can I back out or cancel a contract at any time during escrow.
Buyers Answers

Generally yes, provided that you are still within the investigation period allowed in the purchase agreement (normally 14 days) or if you have found additional adverse material facts that will affect the property contrary to what was specified in the contract. Both parites must agree to the cancelation of the contract. Most of time, the monies incurred during this time are not refundible, specially if independent contractors are involved. e.i. appraisers, proffesional home inspectors, termite companies, septic services, civil ingineers, etc.

This is the reason I always recomend a reasonable investigation period period in the contract, and for the buyer to satisfy him/herself before spending any money in escrow that may not be refundible.

I the monies are not recovered as espected, an attorney is usally recomended to determine who is the liable party.