Terminating a Real Estate Contract
There are many reasons one may want to terminate a real estate contract they have in place. Whatever your reason may be, I am going to explain how terminating a contract works.
The first thing you should look into when thinking about terminating a contract is can you keep your earnest money? You can terminate a contract because of three reasons, and still keep your earnest money. They are;
- If you’re a buyer and your financing falls through at any point (you can’t get a loan).
- If you’re still in your due diligence period or repair procedure period and the sellers are not agreeing to the repairs you asked for.
- If the CL-100 comes back unclear and the seller is not willing to clear it.
A fee that you may incur when terminating a contract is closing attorney fees. Depending how long the house was under contract/how close to the closing date you are, your closing attorney does things like a title search. Even if you get out of a contract with your earnest money, you may still be subject to fees from the closing attorney usually only a couple hundred dollars. If you are looking to educate yourself more on this topic/the world of real estate, or want an agent who is already educated in these areas, reach out to me personally.
Written by: Robert Judy