Letter Samples to Cancel a House Purchase

Buying a house is a huge commitment. And if you intend to cancel a house purchase agreement, it’s best to do it as soon as possible. There may be several requirements you need to submit, depending on what’s stated in your agreement. One of the things you need to start the cancellation process is a formal letter of cancellation of house purchase.

In this article, we’ll be looking at some cancellation letter samples. Making a cancellation letter is much simpler than most people think. We’ll also briefly tackle the steps necessary to cancel your purchase. Make sure to keep on reading!

A miniature model of a house with a magnifying glass next to it.
Photo by Tierra Mallorca on Unsplash

Common Reasons for Cancelling a House Purchase Agreement

A few valid reasons may warrant the cancellation of your purchase agreement with your realtor. Some of these reasons include the following:

  • Issues found on the property upon inspection, such as plumbing defects, water damage, and so on.
  • The property is a fraudulent investment.
  • A purchaser finds a cloud on the title, including a lien or claim on the copy.
  • Despite agreeing to it, the house owner does not allow the purchaser to access the premises for inspection purposes.
  • Property appraisal doesn’t reflect the value of the offer for the home.

How To Cancel House Purchase Agreements

Terminating a standard real estate sales contract may be a bit challenging. If you don’t do it properly, you may encounter legal problems. Here are some steps you need to follow:

Review the Agreement

Review your previously signed purchase agreement for the terms of cancellation. The agreement itself may have a list of valid reasons for termination.

If your reason is included in this list, the seller can’t refuse your request to cancel. You may also ask for assistance from your real estate agent or attorney regarding this matter.

Send a letter of cancellation to the seller or agent.

Let the seller or agent of the property know that you intend to cancel your purchase agreement.

You can easily do this by writing them a formal letter. This letter should explain why you want to terminate the contract and other necessary information about the property.

Negotiate a mutual agreement

You need to ensure that both you and the sellers can agree to cancel the contract. The party who wishes to cancel may submit a letter stating the reasons for the termination and request the other side to accept it.

Draft the Cancellation Form

An effective cancellation form should be written after the contract has been set for termination. This cancellation form should contain the following:

  • Details of the buying and the selling party
  • Date of the actual real estate contract
  • Address of the property
  • How will the deposits be distributed by the seller or the agent

Sign the Form and Distribute the Deposits

After signing the document, the money or any other deposit must be distributed accordingly. The escrow agent must also be notified of the termination.

Sample Letter of Cancellation of House Purchase

Example 1

[Current Date]

To: [Name of Agent or Seller]

[Name of the Real Estate Company]


Subject: Cancellation of property booking

Dear [Name of Recipient],

My name is [Your Name], and I agreed to purchase a [Type of property] on [purchase date]. The location of the property is at [Property address].

I regret to inform you that due to [Reason], I cannot go through with the purchase. I, therefore, want to cancel my booking. As per your terms and conditions, I can still cancel it within 30 days of signing. I’ve also paid the booking charges amounting to [Amount].

I request you to kindly proceed with the cancellation and, as per policy, refund me the Amount I paid at the earliest. Please get in touch with me if any other formalities need to be taken care of.

Thank you very much.


[Contact Details]

Example 2

[Name of Client]



[Name of Agent or Broker]

[Real Estate Company Name]

[Address of Real Estate Company] 

Subject: Cancellation of The Real Estate Purchase Contract

Dear [Name of Agent of Broker]:

This letter is a formal request to terminate the house purchase agreement between [Name of Real Estate Company] and me.

I entered into the contract with you on [DATE] but was not made aware of the extensive damage to the property. Upon having the house inspected, we discovered water damage, extensive repairs needed in the kitchen, bathroom, and ceiling, and visible mildew damage.

This is in clear violation of our signed agreement. I request that you cancel this contract and send me a formal confirmation letter in writing.

Thank you.



List of Enclosures: Signed termination document


letter of cancellation of house purchase is a formal request to cancel an active contract for the sale of a home. Whatever reason you have for canceling your agreement, it’s always best to review the fine print of your contract. Prepare all the needed requirements for cancellation as per your state laws and send a formal letter to your agent.

Abir is a data analyst and researcher. Among her interests are artificial intelligence, machine learning, and natural language processing. As a humanitarian and educator, she actively supports women in tech and promotes diversity.

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