Release Real Estate Contract Without A Deposit
Description
How to fill out Terminating Or Termination Of Easement By A General Release?
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FAQ
Prospective buyers can do several things to protect their earnest money deposits. Make sure contingencies for financing and inspections are included in the contract. ... Ensure contract terms are in writing. ... Read, understand, and abide by the terms of the contract. ... Utilize an escrow account to hold funds.
Financing contingencies, appraisal contingencies, and home-to-sell contingencies are all reasons a buyer could receive their earnest deposit back during the escrow period.
While a contract, to be valid, must have consideration, the earnest money is not consideration. Earnest money is a good faith deposit and is not necessary to have a valid contract.
By making a ?deposit? the offeror/buyer, the offeror/buyer gives the offeree/seller ?consideration? upon acceptance of the offer by the seller. Thereby, the buyer has meet the forth essential element necessary to ?found? or create a binding contract.
Until both parties have come to an agreement on all the contract terms and actually signed the purchase agreement, neither of you are legally bound to anything, and you can withdraw your offer without any problem.