Can a seller back out of house contract and what may happen ifthey do?
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Can a seller back out of house contract and what may happen ifthey do?
I am the seller. We have a signed contract dated 2/23/11. The buyer had 30 days to obtain a loan commitment. It state on contract, “If Buyer does not deliver written notice to Seller of receipt of Loan Commitment or Buyer’s written waiver of this financing contingency, then after loan commitment date Seller may terminate this contract by delivering written notice to Buyer and the deposit shall be refunded to Buyer thereby releasing Buyer and Seller from all further obligations under this contract”. Deposit is in escrow. Will Ihave to pay them bank for appraisal or inspection?
Asked on March 31, 2011 under Real Estate Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
For a definitive answer, you should consult with a real estate attorney who can evaluate the *entire* contract, since one section or term can influence how others are or should be read.
That said, the language you quote seems straightforward: if as of the loan committment date you have not either waived the finance contingency or obtained financing, the seller may terminate the contract by providing written notice and returning your deposit.
If the seller does so, you, as the buyer, would be responsible for any/all costs which you commissioned or which are properly the obligation of the buyer, such as a bank appraisal or home inspection; there is nothing in the language quoted indicating that the seller would pay or you would not be responsible.
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