To cancel a purchased home, review the purchase agreement for cancellation clauses, typically allowing withdrawal within 3-5 business days. Notify the seller in writing via certified mail or email, adhering to deadlines. Consult a real estate attorney to mitigate liability for earnest money or penalties. Post-acceptance, cancellation may require negotiating a return of deposit or discussing terms with the seller, but terms vary by state.

The ability to cancel depends on contractual terms and jurisdictional laws. The National Association of Realtors (NAR) reports 5-10% of buyers cancel transactions pre-closing, with average cancellation fees of $500-$2,000 (2022). State-specific regulations, like California’s 3-day cancellation window for new home purchases, impact feasibility. Legal non-compliance risks lawsuits or forfeited deposits, underscoring the need for professional guidance. Data from the American Bar Association shows 68% of cancellations occur due to financing issues or property inspections, highlighting common triggers. State median earnest money deposits range from $1,000 (Texas) to $5,000 (New York), influencing cancellation costs. Federal Housing Administration (FHA) loans require stricter cancellation protocols, reflecting regulatory disparities. Proactive review of state-specific statutes and contract terms is critical to avoid financial or legal repercussions.