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Is there a penalty for retracting an offer?

We recently put an offer on a short sale. The owner approved just waiting on their bank. We want to retract our offer. How do we do so? Also will there be a penalty for doing so?
  • November 04 2013 - US
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Answers (4)

If you don't have bank approval, you don't have a fully accepted offer.

Ask for a mutual rescission of the purchase agreement. If you have submitted an earnest money check, you should be able to get the money returned.

In my state (MN) we no longer need to provide earnest money until there's bank approval. This can eliminate the hassle of getting earnest money returned should the buyer change their mind.
  • November 04 2013
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Do you have a due diligence period, where you can withdraw for any old reason that you choose.  Please go to your agent and discuss any penalties, if any, for withdrawing...hopefully you will lose nothing.
  • November 04 2013
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Profile picture for Outer Banks N C
Normally there is a document called something like the Short Sale Addendum that basically says the whole contract is contingent upon the bank agreeing to any sales price and until they sign it the contract is contingent. You should just have to sign a withdrawal agreement and get the seller to sign it and you are done.


tim
  • November 04 2013
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Profile picture for Super Agent Marvel
Have your agent draw up a withdrawal of offer form, sign it and have it sent to the seller.  Shouldn't be a penalty - at least not from what you are saying.
  • November 04 2013
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