Can a Buyer Walk Away After Signing a Purchase Agreement in Connecticut?

 Posted on April 30, 2026 in Real Estate Law

A buyer may be able to walk away after signing a purchase agreement in Connecticut. However, whether they can do so without losing money depends on the situation. Signing a purchase agreement is a serious legal commitment. It is not the same as making an offer. Once both parties sign, the contract is binding. That said, most purchase agreements include contingencies that give buyers specific ways out under certain conditions. If you are dealing with a real estate transaction in 2026, a Fairfield County real estate lawyer can help you understand exactly what your contract allows and what it does not.

What Is a Purchase Agreement and What Does It Commit You To in CT?

A purchase agreement is the main contract between a buyer and a seller in a real estate deal. It spells out the purchase price, the closing date, what is included in the sale, and the conditions that have to be met before the deal is final. Once both parties sign, both are legally required to follow through unless a valid reason to exit exists within the terms of the contract.

In Connecticut, many residential real estate deals also include an attorney review period. During this window, which usually lasts five business days, either party's attorney can look over the contract and ask for changes. If the attorneys cannot agree on changes, the contract can sometimes be canceled during this period. This is one of the most important protections available to buyers in Connecticut, and it is worth using fully.

What Are Contingencies in a Purchase Agreement and How Do They Protect Buyers?

Contingencies are conditions written into the purchase agreement that have to be met before the sale can close. If a contingency is not satisfied, the buyer generally has the right to walk away and get their earnest money back.

The most common contingencies in Connecticut real estate contracts include:

• A financing contingency, which lets the buyer exit if they cannot get a mortgage at acceptable terms
• A home inspection contingency, which gives the buyer the right to have the property inspected and to ask for repairs or walk away if serious problems are found
• An appraisal contingency, which protects the buyer if the home is appraised for less than the agreed purchase price
• A sale contingency, which lets the buyer exit if they cannot sell their current home within a set timeframe

Each contingency has its own deadline and steps the buyer must follow. If a buyer wants to use a contingency to exit, they have to do it the right way and on time to avoid legal complications.

What Happens to the Earnest Money if a Buyer Walks Away From a Purchase Agreement?

Earnest money is a deposit the buyer puts down when the purchase agreement is signed to show they are serious. In Connecticut, the amount varies but is often one to two percent of the purchase price. What happens to that money if the buyer walks depends on why they are walking away.

If the buyer exits through a valid contingency, they are generally entitled to get their earnest money back in full. If the buyer walks away without a valid legal reason, the seller typically has the right to keep the deposit as liquidated damages. Under C.G.S. § 20-324k, earnest money deposits must be held in escrow by real estate brokers, and the statute sets out specific rules for how those funds are handled and when they can be released to either party. In some cases, a seller may also have the right to sue the buyer for additional losses beyond the deposit if the breach caused significant financial harm.

Can a Buyer Walk Away After the Home Inspection in Connecticut?

If the purchase agreement includes a home inspection contingency, the buyer can have the property inspected within a set period and respond to what the inspection shows. Depending on how the contingency is written, the buyer may be able to ask for repairs, request a lower price, or walk away entirely if the seller will not address serious problems.

The key is following the steps in the contract exactly. Simply deciding not to move forward after an inspection without following the proper process may not protect the buyer's deposit. Having an attorney guide you through the response process is the safest approach.

What If the Buyer Just Changes Their Mind After Signing a Purchase Agreement in CT?

If a buyer simply changes their mind and no contingency applies, walking away will almost certainly mean losing the earnest money. The seller may also have the right to sue for breach of contract, especially if they suffered financial losses when the deal fell through.

Can a Property Seller Force a Buyer To Complete the Purchase in CT?

A seller can pursue something called specific performance, which asks a court to order the buyer to go through with the purchase. This is more common in commercial real estate, but it is legally possible in residential cases, too. More often, sellers go after money damages rather than specific performance. But the possibility is real and is another reason why walking away without cause is a serious decision.

Schedule a Free Consultation With Our Stamford, CT Residential Real Estate Attorney

Walking away from a signed purchase agreement is rarely simple. The financial and legal consequences depend entirely on the specific terms of your contract. Attorney Weiner brings 40 years of legal experience to real estate transactions throughout the area and can help you understand your rights, your obligations, and your options before you make a decision that could cost you significantly. Call Law Offices of Daniel P. Weiner at 203-348-5846 to talk to a Fairfield County real estate lawyer today.