Cancellation Letter for House Purchase – Sample & Template

There are many reasons you may want to cancel a home purchase, such as an unexpected provision in your contract, dissatisfaction, or a change in your financial position. If you pull out of a deal without a justifiable reason, the real estate agent or company may take legal action against you. This is why you should always make your exit professional and legal through a cancellation letter.

A Cancellation Letter for House Purchase is an official document a recent homeowner writes to a real estate agent or company to nullify or cancel their existing buyer’s contract. Because pulling out of a real estate deal can have legal repercussions, sending this letter can protect you from future litigation.

Below are some pointers and sample letters to help you cancel your home purchase.

Canceling a Purchase Agreement

A contract to purchase a real estate property is called a purchase offer or agreement. You can cancel it and get back your deposit if certain circumstances are met. Generally, you must:

  • Read your contract – This is the most crucial step to take when canceling a home purchase. You want to have an attorney point out the cancellation clauses in your agreement and set you in the right direction.
  • Study state and federal laws State and federal laws often provide contingency periods within which you can cancel a home period. There are also provided-for reasons such as lead paint.

Elements of a Home Purchase Cancellation Letter

Canceling a real estate contract can constitute a breach of contract if you are not careful. Always consult an attorney before drafting your cancellation letter and go through your agreement to ensure it provides for your cancellation reasons. Once this is done, ensure your letter contains the following:

  • The names, addresses, and contact information of all parties involved in the contract
  • The start and expiration dates of the contract
  • Your reason for terminating the contract
  • A quoted clause from the contract that allows you to cancel
  • Any remedies the real estate agent may make to prevent the cancellation.
  • A reply-by date

Writing Tips

Consider the following tips when drafting your Cancellation Letter for House Purchase:

  • Always read the termination clause on your contract before drafting your letter.
  • Explain your reasons for terminating the contract and ensure they are valid and legitimate
  • Cite clauses from your contract that allow you to cancel
  • Write in a polite and professional tone and avoid using confrontational, violent, or vulgar language.
  • Keep your letter to one page or less.

Cancellation Letter for House Purchase (Format)


{Real Estate Agent/Broker’s Name}

{Name of Real Estate Company}

{Real Estate Company Address}

{City, State, Zip Code}

Re: Cancellation of Real Estate Contract {Contract No.}

Dear {Mr./Mrs./Ms. Last Name},

I, {your name as homebuyer} am writing to request that you terminate the contract between myself and {name of real estate company} of the purchase of the house at {house address}, made on {purchase date} through {agent’s/broker’s name}.

The termination clause on my contract entitles me to cancel the purchase if {quote the clause of your agreement that allows you to pull out}. I am, therefore, pulling out because of {reason for cancellation}.

Kindly sign the enclosed cancellation document and return it to me by {date}. If you have any queries, feel free to reach me at {contact information}.


{Your Name}

Sample Cancellation Letter for House Purchase

24 February 2031

Dave Johnson

Grover Homes and Properties Ltd.

009 Old Glory Road

Los Angeles, CA 96990

Re: Cancellation of Real Estate Contract

Dear Mr. Johnson,

I am writing to cancel the real estate contract I entered with Grover Homes and Properties Ltd. on 20 February 2031 for the purchase of a home on 122 Orefield Street. This move has been necessitated by a recent inspection that found the house to have lead-based paint.

According to my contract, I am allowed to cancel my purchase within 14 days of the signed date for a reason provided for by the company. I wish to take advantage of this clause and urge you to sign the termination letter and return it to me by 1 March 2031.

If you have any questions or concerns, you can reach me at [email protected]


Mellissa Chan

Termination Letter to Purchase Agreement (Word Template)

Cancellation Letter for a House Purchase (Word Template)

Final Thoughts

Terminating a real estate contract often goes beyond drafting a well-written Cancellation Letter for House Purchase. It is always advisable to seek legal advice and interpretation of your contract to determine how it provides for cancellations. Once your attorney gives you the go-ahead, you can get to draft a detailed, short, and professional cancellation letter.