Q: How to get out of a faulty real estate purchasing contract?
Hi, I need help and advice on a canceling a real estate brokerage contract without fee penalized My partner and I were trying to look into purchase a home together before marriage. Both of us are first time home buyers and are new to the knowledge of home purchasing. We were trying to get a house that was advertised on realtor.com as well as Zillow with my realtor. Now, since signing contract, the home appraiser found false the property details listed to be false, property listing stated home had public sewer and it does not, property also has damaged septic tank. We no longer want property because of these false details and don't want to deal with damaged septic tank. Loan to purchase home is not secure and we asked our realtor to cancel and we no longer want to go through the process. She then stated we had to pay $3, 000 to cancel.
A: If you did not cancel the contract within the due diligence period, you forfeit your earnest money. If the $3,000 you reference was your earnest money, you will not be able to get that back. If there were pending inspections at the time of due diligence expiration, your agent should have requested an extension of the due diligence period. If you are attempting to cancel a buyer brokerage agreement, which is a completely different contract from the purchase contract, you may owe a termination fee if it is outlined in writing in the buyer brokerage agreement. Reach out the the broker or owner of the real estate brokerage you utilized to resolve any disputes.
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