Essex, MD asked in Real Estate Law for Maryland

Q: Hello, I’m under contract for a home and want to back out due to it under appraising

The realtor has informed me that I cannot back out of the contract or I will lose my security deposit. The original appraisal was disputed. The seller is pushing to pay for another appraisal to be done. The realtor has asked the lender to get approval for another appraisal, but at this point I just want out.

Related Topics:
2 Lawyer Answers
Mark Oakley
Mark Oakley
Answered
  • Rockville, MD
  • Licensed in Maryland

A: If you have a financing contingency, and your lender refuses to approve the loan based on the appraisal, then you may have a basis to cancel, but it depends on the language of the financing contingency and whether the lender will fund the mortgage for the purchase price under a different appraisal, or if you can still get alternative financing on the same terms set forth in your financing contingency if the specific lender is not specified. You will need to take your contract and other documents to a lawyer to review.

Thomas C. Valkenet
Thomas C. Valkenet
Answered
  • Baltimore, MD
  • Licensed in Maryland

A: If you have the standard MAR contract, the financing and appraisal addenda will describe a specific process to deal with this common situation. I say this as both a lawyer and Maryland licensed broker. Some agents will push for you to act outside the written process in order to preserve their right to collect commission. Your question can't be answered, here, because we do not know what addenda have been included in your contract with the seller.

Also, there is a mediation process to resolve a dispute about the security deposit.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.