A signed contract to buy a home in Texas is a legal document. It means you and the other person have agreed to certain terms that are legally binding. If either of you decides you no longer want to honor the contract, it may be considered a breach.
According to Realtor.com, most contracts offer a way to back out without being consider in breach of contract. A contract often has stipulations or contingencies written into it that must be met. For example, if you are buying a home, you may have conditions such as the house must pass inspection or you must get your loan approved. If the house failed inspection or you do not get approved for a loan, then you can back out of the contract without any penalties or fears of legal action. Sellers may also have a way out of a contract by including a clause that allows them to back out of the sale.
Typically, if you change your mind about buying or selling a home while you are under contract, you will have to face the consequences. If you are buying and back out with no approved reason for doing so, you may lose any money you put down on the house and could be sued for breach of contract. As a seller, you may also face being taken to court. Either way, there is money to be lost and much hassle, so it is always best to be sure you really want to buy or sell before entering a contract situation. While this information should not be taken as legal advice, it can help you understand the process and what to expect.