Should the need arise, is it possible to terminate a real estate contract?
When it comes to cancelling a real estate contract there are two terms you need to become familiar with: release and terminate.
Release - A release is an action the seller and the buyer must take together. Should the buyer not have cause to terminate the contract, the seller can agree to release them in exchange for forfeiting say the earnest deposit.
Terminating -This something one party does when they have a legal right to do so when a contingency is not fulfilled.
Most states afford the buyer many opportunities to legally back out of a purchase agreement. A typical real estate contract provides several contingencies which affords the buyer a legal way to terminate the contract and receive a refund for the earnest money.
It is important to carefully review the purchase agreement and take note of all the deadlines established. Missing deadlines could cause the buyer to forfeit their right to terminate the contract.
Bottom Line: Be sure to include your real estate agent and your attorney in any discussions before terminating a real estate contract to protect your legal interests.
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