It is possible to terminate the contract. It is possible if you make a written message to your seller. The agreement provides for a period of time that allows the buyer to terminate it. In addition, state real estate laws can help protect the buyer when necessary. Cancellation fees may be charged by a seller. The amount must be fixed in advance. The parties to the proposed transaction typically execute letters of offer before executing a binding purchase agreement. Whether or not a letter of offer is binding depends largely on the wording and content of the document. The courts will interpret them in accordance with the document. Term sheets are rarely used in our jurisdiction. Sales, leasing and financing transactions are very different.