How a Consumer Hired a Lawyer to Draft a Real Estate Purchase Agreement in Massachusetts

Generally no, a lender cannot unilaterally change the terms of a loan agreement without the borrower's consent. Loan agreements are binding contracts, and any modification to the terms (such as interest rate, repayment schedule, or collateral requirements) typically requires both parties to agree to the change. However, depending on the agreement's terms and the type of loan, there are some nuanced exceptions. Some loan agreements permit changes without borrower consent, such as variable rate provisions, default provisions (allowing changes if borrower is in default), or loan servicing clauses (ex. payment instructions can usually be modified unilaterally). However, in each case, these rights to modify the terms must be clearly stated in the loan agreement, and if the agreement is silent, the lender cannot change the terms without the consent of the borrower. The information provided in this response is for general informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by this communication. For advice specific to your situation, please seek legal counsel.

Hello! My name is Damien Bosco, Esq. My law office is in Long Island City, across from Manhattan. A seller's ability to back out of a real estate purchase agreement after signing it is generally very limited, as contracts for the sale of real estate are legally binding once both parties sign it. The seller's ability to back out typically depends on the specific contingencies outlined in the agreement. For instance, if the contract includes a contingency that hasn't been satisfied (e.g., the buyer's financing falls through), the seller may have grounds to terminate. You may want an attorney to review the Agreement to see whether there is a potential breach of contract claim. Feel free to reach out.