To withdraw from a property purchase after buying a home, first review the purchase agreement for cancellation clauses and deadlines. If the agreement allows cancellation, notify the seller in writing within the specified timeframe, typically 3–5 business days. Return the earnest money deposit promptly, minus allowable fees like appraisal or inspection costs. Consult a real estate attorney to ensure compliance with state laws, such as California’s 3-day right-to-cancele or New York’s 17-day cancellation period. If the seller refuses, file a dispute with the escrow agent or a small claims court.

The process hinges on contractual terms and state regulations to protect buyers and sellers. Nationally, 12% of homebuyers cancel transactions pre-closing, with earnest money disputes resolving 68% successfully in 2022 (National Association of Realtors). States like Texas require written notice within 72 hours, while Florida mandates a 5-day window. The average earnest money deposit is $20,000, but 30% is forfeited due to non-compliance with cancellation protocols (American Bar Association, 2023). Legal non-compliance risks losing the deposit entirely or facing lawsuits. Escrow agents typically enforce terms to avoid liability, ensuring timely refunds when procedures are followed. This structured approach balances buyer rights with seller protections, minimizing financial and legal risks.