Can I cancel a Short Sale Contract, because I found a better home, which is on regular sale?

I signed a short sale contract with closing date as Aug 21st. My attorney sent an addendum that the contract will be cancelled if the Seller's lending bank do not respond / approve before Aug 1st 2012. Right now, I saw another property which is of interest to me and wanted to cancel the Short sale contract right away (July 26). Is there any provision to do that? If yes, please advise on what needs to be done. My attorney says that we cannot cancel until Aug 1st.
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July 25 2012 - Secaucus
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I've gotta say if you hired an attorney that knows the local laws and regulations, I don't think he/she would steer you wrong.  For a question like this I always recommend seeking legal counsel.  Since you've already done that I would trust him/her to interpret the the offer/contract because REALTORS are not usually qualified to do so.  Good luck!
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July 25 2012
Thanks everyone for the replies. I definitely agree that its not fair to think about cancellation of the contract before Aug 1st. As advised by my attorney I shall wait till Aug 1st and then act accordingly.

I should and shall act according to my attorney's words.
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July 28 2012
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"In every law suit you have 2 lawyers, one turns out to be correct while the other is wrong. Which lawyer do you have?"

In a lawsuit, lawyers are advocates. They either have a strong case, or a weak case. "Correct" and "wrong" have nothing to do with it.

With that being said, lawyers are people. Just like doctors, plumbers, engineers, and REAs. People give good advice. People give bad advice.
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July 28 2012
In every law suit you have 2 lawyers, one turns out to be correct while the other is wrong. Which lawyer do you have?

I had a buyer tell me today his daughter is a lawyer and she told him that if he wrote a back-up offer on a short sale that he could not cancel it and write an offer on another house he found he liked better. I think we all know that was incorrect, but came from a lawyer. Not sure what type of lawyer.
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July 28 2012
Subramaniam - If you hired an attorney to look over the contract, this sounds like a question for your attorney.  I am not a licensed attorney and cannot give legal advice.  

When I list a short sale, we have the Buyer sign a 90 day addendum that says they'll stay engaged for 90 days from the signing of Purchase & Sale (P&S).  If the Buyer opts to backout prior to that time, they will forfeit any funds they submitted with the P&S contract.

Consult your attorney for legal advice.  If you didn't hire an attorney, then hire one to review the contract for you.  Be sure to qualify whether or not the attorney has a specialty in real estate law.

Expect First Class,
Ryan
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July 28 2012
I would have to agree and suggest that you listen to the attorney. If the attorney provided legal documents stating August 1st then you must give the sellers bank an opportunity to respond. You cannot just cancel a contract because you see a property that is more appealing.
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July 28 2012
In MA you will have to wait until August 1st.
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July 25 2012
I had to go with an attorney, since I felt it would be much easier to handle any situations with attorney's help.
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July 25 2012
In Oklahoma, it seems as if you would still be in negotiations, where the seller has agreed to the price, but the bank has not? If so, here you can withdraw your offer anytime before the bank responds.

In reality, you do not have a ratified contract, just an offer. Is there a reason you are using an attorney instead of an agent?
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July 25 2012
Here in Arizona, you can cancel anytime prior to bank approval.
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July 25 2012
 
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