Can You Withdraw an Offer on a House

Yes, you can legally withdraw an offer on a house in the UK at any time before contracts are exchanged. Making an offer, even when accepted by the seller, does not create a binding legal agreement. Until both parties sign and exchange contracts, either side can pull out of the deal for any reason without facing legal penalties.

This flexibility is a double-edged sword. While it protects buyers who change their minds or uncover issues with the property, it also leaves sellers vulnerable to last-minute withdrawals and delays.

When is an offer legally binding?

In the UK, property purchases become legally binding only at the point of exchange of contracts. Prior to that, even if your offer is accepted, both the buyer and the seller are free to change their minds. This means you can withdraw your offer due to a change in circumstances, findings from a survey, mortgage issues or simply a decision to pursue a different property.

Until contracts are exchanged, the agreement is considered "subject to contract". This is standard across England and Wales, although Scotland has a slightly different legal process that includes missives, which may become binding earlier.

Why might someone withdraw an offer?

There are many legitimate reasons a buyer may wish to withdraw. The most common include receiving a poor survey report, discovering structural or legal issues, delays in the transaction process, or a change in financial circumstances. Sometimes buyers experience buyer’s remorse, find another property or are outbid on a separate home and choose to redirect their offer.

Mortgage difficulties also account for many withdrawals. If your lender offers less than expected or if your financial position changes during the process, you may be forced to step back from the purchase.

Do you have to give a reason for withdrawing?

No, you are under no obligation to give a detailed reason when pulling out before exchange. However, it is courteous to inform the seller or estate agent as soon as possible and provide a clear explanation. This allows them to relist the property quickly and reduces unnecessary costs or delays for all parties involved.

While not legally required, offering an honest reason helps preserve goodwill, especially in chains where your withdrawal may affect multiple buyers and sellers.

Are there any costs involved in withdrawing?

Withdrawing an offer before contracts are exchanged does not carry any legal penalty. However, you may lose money you have already spent on surveys, mortgage arrangement fees or legal advice. These costs are non-refundable, and you should be prepared to write them off if you decide not to proceed.

If you are part of a long chain, your decision may also affect others, particularly if they have spent money based on your commitment. Although there is no legal obligation to compensate others in the chain, it can cause frustration and delays for all involved.

What happens after you withdraw your offer?

If you withdraw your offer, the sale process ends, and the property goes back on the market unless another buyer is already waiting. You are free to make another offer in future, though the seller may be reluctant to accept if you previously pulled out.

If your withdrawal was based on a negative survey or legal issue, the seller may be forced to address the problem before relisting or accept a lower offer. Sometimes a reduced offer from the original buyer may still be accepted if the seller is keen to complete.

Can a seller withdraw after accepting an offer?

Yes, just as buyers can withdraw, sellers can also change their mind up to exchange of contracts. This is known as gazumping, where a seller accepts a higher offer after already agreeing to sell. While legal, gazumping is often viewed as unethical and can cause financial and emotional stress for the buyer.

The only way to secure a purchase legally is through the exchange of contracts. Until that point, all parties remain exposed to the risks of withdrawal or delay.

How to reduce the chances of needing to withdraw

Before making an offer, it is sensible to have a mortgage agreement in principle and a clear understanding of your budget. Research the area thoroughly, view the property more than once and ask key questions about its condition, planning status and any potential problems. Involving a solicitor early and commissioning a survey promptly can also help uncover issues before you are too committed.

If you have doubts at any point in the process, it is better to address them early. Withdrawing later, especially just before exchange, causes greater disruption and can result in higher wasted costs.

Conclusion

You are legally entitled to withdraw an offer on a house at any time before contracts are exchanged in the UK. While there are no legal penalties, you may lose money spent on surveys or legal work. Withdrawing can be stressful for sellers, particularly in chains, so it is important to act swiftly and communicate clearly. Taking the time to be thorough before making an offer helps reduce the likelihood of needing to pull out later on.