According to Tomazic, it's too late to cancel the contract once all contingencies are resolved. If you do cancel your contract, the seller can either release you from the sale contract or sue you for specific performance.  And once you've closed on the property, you're the new owner. "If you were to discover serious problems that were not disclosed, you may have an opportunity to sue the former owner for not disclosing material issues, but you can no longer cancel the contract at this point," Tomazic said.