Profile picture for newpemb

Backing out of contract

I am in a situation where I signed a contract and agreed to put 10% into escrow account and contact says I will loose escrow deposit if I don't close in certain time period.

And before making the escrow deposit things changed and I have to back out.
my question is
Can I back out now
Does the seller come back to me for 10% what i agreed.

Please advice these answers will help me what to do.
  • February 06 - Miami
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Answers (7)

Good Afternoon,

As realtors we are not allowed to provide legal advise and this question is very much of a legal nature. Your reasons for needing to cancel may be valid and you may wish to communicate this through your realtor in writing and the seller may go ahead and release you from the contract, but this is not a guarantee. As has been stated before, you are best served in contacting an attorney, if the seller wishes to retain your deposit. First seek the assistance of your realtor, and if that does not work , then go to an attorney just as soon as possible.
  • February 06
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The answer depends on the contract you signed.

You haven't given enough information in your question to give a good answer.   First, you need to read the contract.  If you do not understand after reading the contract, talk to your agent.  If you do not have an agent, go to an attorney quickly and ask for their advise.

Best of luck to you!
  • February 06
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Do you have a buyer's agent or are you dealing directly with the seller's agent and they are representing both parties?  Hopefully you have a buyer's agent who should be able to guide you through this.  In most all contracts, there are several steps before the seller is fully entitled to the escrow.  In our contract, the first step is that it passes the home inspection (paid by buyer) and then it must appraise for purchase price (unless a CASH deal).  If it is a mortgage and you end up not qualifying for a mortgage, that is another out for a buyer without losing Earnest Money Deposit or Escrow.  In the end, I agree with the other answers that you should consult an attorney.
  • February 06
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Call your attorney and discuss the contract with them. 
  • February 06
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Profile picture for wetdawgs
Did you have any contingencies in your purchase offer contract?    

Talk with an attorney.  It is likely to be time well spent.  
  • February 06
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How far along are you in the escrow process...in other words, how long ago did seller accept your offer and the closing period began? Either way, you're in a better position because you haven't turned in your ddeposit yet. And you may be safe all together if this is within the contingency period.
  • February 06
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Profile picture for sunnyview
You have a contract and most of the time there are specific times or reasons you can back out such as not being able to get financing, the property not having acceptable inspections etc. No one can read your contract, but any court will follow what it says.

If you don't know and feel that your 10% is at risk you need to consult with an attorney ASAP to see if you have any options. Backing out without legal advice can cost you a lot more money than a 30 minute consultation and more than your 10% in some cases too.
  • February 06
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