After you’ve had a bid accepted for your new home, you’re entitled to pull out at any time up until the point of exchange. However any costs incurred leading up to this point such as surveys or legal advice will be lost.

If you want to pull out once you’ve exchanged contracts it gets harder. You will have put down a 10%, non-refundable deposit and may be liable to a number of additional costs which the seller can recover through the courts.

For example, if the seller is using the funds to buy their next property and you break the ‘chain’ then they may not be able to continue with their deal. You may then face paying for their associated costs. Also, if the value of the seller’s property drops between you pulling out of it and them getting a new bid, you could be forced to make up the difference.

If you are uncertain about the purchase or feel uncomfortable, you would make your move before putting down a deposit.

Issues highlighted in the property survey are the most common reason for pulling out of a deal. Due to the high value of houses nowadays, people are easily alarmed by even minor faults. If you’re concerned, speak to your surveyor and if necessary get a reputable builder to view the property and assess the cost of any remedial works. Unless there is evidence of subsidence or structural defects, most of the problems raised can be resolved easily. Your first move is to speak to the agent to try and get the seller to adjust the price accordingly, rather than backing out. If you are paying a ‘full’ price for the property then this would seem fair. However if you have already negotiated a sizable discount off the original price then you should think twice before trying to renegotiate. If the sum for remedial works is too large or the seller won’t negotiate, then you would be within your rights to pull out.

Not having the right finances in place can also be a reason for pulling out although it is common practice for an agency to make sure you have your finances agreed and signed off before you submit a bid.

The first step is to talk with your agent. Make sure you are backing up your reason to pull out with evidence. You’ll want to be making your decision as early in the process as possible. Not just to make life easier for the seller – who could quickly relist if you pull out just days after agreeing a price – but also to reduce your own costs, such as structural surveys, legal costs and storage facilities.