Can you back out of buying a house in Arizona? Yes, if you use a right the contract gives you, on time. The standard Arizona REALTORS® Residential Resale Real Estate Purchase Contract builds in several exits: the 10-day inspection period, the appraisal contingency, the loan contingency and a few disclosure-based rights. Use one correctly, and your earnest money comes back.
What if you just change your mind? Outside those rights, walking away can be a breach. After a three-day cure period, the seller may cancel and keep your earnest money as liquidated damages. The timing of your exit matters as much as the reason.
Data note: Contract terms come from the Arizona REALTORS® Residential Resale Real Estate Purchase Contract sample form (February 2026 revision, the current version on the association's forms page). Your contract may be negotiated differently. This is general information, not legal advice. No market statistics are included in this post.
Your Exit Points at a Glance
- Before acceptance: withdraw the offer any time before you receive the seller's signed acceptance
- Inspection period: 10 days by default, cancel by naming disapproved items
- Disclosures: disapprove the seller's disclosure statement within the inspection period or 5 days after receipt, whichever is later
- Appraisal: cancel within 5 days after notice of a value below the price
- Loan: notice of inability to get loan approval no later than 3 days before close of escrow
- Major damage: either side can cancel if repairs exceed 10% of the price
- Deadlines: calendar days, and verbal talks don't extend them
Before the Contract Is Accepted
An offer isn't a contract until it's accepted. You can withdraw an offer any time before you receive the seller's signed acceptance. Once it's accepted, the contract binds you, even before the earnest money check clears.
The Inspection Period: Your Widest Door
How It Works
The default inspection period is 10 days after acceptance. It covers inspections, insurance quotes, HOA documents, square footage and anything else material to you.
Cancel or Negotiate
Deliver a signed notice of the items you disapprove, then either:
- Cancel immediately, and the earnest money is released to you, or
- Ask the seller to correct the items. The seller has 5 days to respond; you then have 5 days to cancel if you don't like the answer
Miss the deadline and it's treated as an election to proceed. Talking it over by phone doesn't stop the clock.
Disclosures and Lead Paint
You can also disapprove items in the Seller's Property Disclosure Statement or the insurance claims history within the inspection period or 5 days after receipt, whichever is later. For homes built before 1978, the lead-based paint rules give buyers separate rights.
After Inspection: Appraisal and Loan
Appraisal Contingency
If the appraisal comes in below the price, you have 5 days after notice of the appraised value to cancel and get the earnest money back.
Loan Contingency
If you can't get loan approval, deliver notice no later than 3 days before close of escrow to cancel and recover the earnest money. The contract specifically says that not locking a rate or lacking your down payment funds isn't an unfulfilled loan contingency.
On Closing Day
By closing day, most deadlines have passed, so your remaining options are narrow:
- Final walkthrough: confirms the home is in substantially the same condition and agreed repairs are done; speak up before closing, because after closing may be too late
- Major damage: if the cost to repair exceeds 10% of the price, either party can cancel
- Seller breach: if the seller fails to perform, you can send a cure notice too
If you fail to close without a valid right, the seller can send a cure notice. After 3 days, they may cancel and keep the earnest money.
After Closing
Once the deed records and escrow closes, the contract is complete. There's no cancellation right after closing. Problems found later are a matter of disclosure, warranties or legal claims, not backing out.
How Cancellation Actually Happens
- In writing, delivered to the other party or the escrow company
- State the reason for cancelling; it takes effect immediately upon delivery
- Earnest money disputes: the contract lets escrow release the funds under the contract's terms, in its discretion
- Prepaid items paid separately from the earnest money aren't refundable, and the initial appraisal fee is non-refundable
- Disputes go to mediation, then arbitration
“Most buyers who need to walk away do it during the inspection period, and they do it cleanly. The trouble always comes from a missed date. So on day one, I put every deadline on my client's calendar and mine: inspection, appraisal, loan notice and closing. If you might need an exit, you want to know exactly when each door closes.”
— Elizabeth Vijan, Tackett Team, eXp Realty
Frequently Asked Questions
Can I back out of buying a house after inspection in Arizona?
Yes, within the 10-day inspection period, by delivering a signed notice of disapproved items.
Can I back out of buying a house before closing?
Only with an open contract right: the loan contingency, the appraisal contingency or major damage.
Can I back out of buying a house on closing day?
Rarely without risk. Failing to close can cost your earnest money.
Can I back out before earnest money is deposited?
Before acceptance, yes. After acceptance, the contract binds you either way.
Buying Soon? Let's Map Your Deadlines
I'll walk you through every contingency before you sign, so you always know where your exits are.
Elizabeth Vijan | Tackett Team, eXp Realty
Scottsdale & Phoenix Real Estate Specialist
Talk With Elizabeth · Call or text 602-885-7752
Sources: Arizona REALTORS®: Residential resale purchase contract, Feb. 2026 (PDF) · Arizona REALTORS®: Residential resale transaction forms
Disclaimer: General information, not legal advice. Contract terms vary; consult an Arizona real estate attorney about your situation. Information deemed reliable but not guaranteed. Equal Housing Opportunity.
Tackett Team, eXp Realty · Get in touch