To cancel a purchased home, review the purchase agreement for cancellation clauses, which often outline deadlines and conditions. Contact the seller or real estate agent immediately, clarify your intent to cancel, and request written confirmation. If the contract lacks explicit cancellation terms, consult a real estate attorney to assess legal options. Some states allow cancellations within a specific timeframe (e.g., three days in California for new home purchases). Fees, such as earnest money deposits, may apply depending on the agreement.

Cancellation processes vary due to state laws and contractual terms. For instance, the U.S. Consumer Financial Protection Bureau (CFPB) reports that 15% of real estate disputes in 2022 involved contract cancellation issues, often stemming from unclear terms or financial disagreements. State-specific regulations, like New York’s three-day cancellation window for new construction, highlight the need for localized legal guidance. Additionally, the National Association of Realtors (NAR) notes that 8% of homebuyers cancel transactions pre-closing due to financing changes or property inspections, with average cancellation costs totaling $5,200 per transaction, per 2023 industry data. These figures underscore the importance of thorough contract review and professional advice to mitigate financial and legal risks.