what are the consequences if one decides to back out of a contract on a new house.?
Answers:
You could lose any deposit that you put on the house.
Other answers:
You could loose your entire deposit or the owners could sue you in court to enforce the contract.
You could loose your entire deposit or the owners could sue you in court to enforce the contract.
In California there is a grace period in which one can back out of a contract without penalty. It is 24 or 48 hours. It may be federal. You should check for your locale.