To cancel a house purchase after a down payment, review the purchase agreement for cancellation clauses, deadlines, and refund policies. Contact the seller or real estate agent immediately to initiate the cancellation process, which may involve submitting a written notice and adhering to state-mandated timelines. Refund amounts depend on the reason for cancellation and applicable laws, often requiring proof such as financial hardship or property defects.

U.S. real estate laws vary by state, but most require written notice for cancellations. For example, Texas allows a three-day right to cancel if the buyer changes their mind, while New York mandates a 72-hour cancellation window for new home purchases. The National Association of Realtors (NAR) reports that 5-10% of buyers cancel transactions after a down payment, often due to financing issues or unexpected property problems. The Consumer Financial Protection Bureau (CFPB) notes that 30% of cancellations involve loan approval delays, with average refund amounts ranging from 1-3% of the purchase price. State-specific regulations, such as California’s cancellation rights for new construction, further influence outcomes. Legal counsel is recommended to navigate complex refund processes and avoid penalties.