Q: I made an offer in a house and had to back out, but there was never a mention of earnest money through any of this
I told the agent I had to withdraw my offer for financial reasons and she’s been telling me the sellers complaint has been making a big stink about it and said they were advising their client to speak to an attorney. Now today my agent is telling me no worries, it’s all good and sends me the withdrawal papers to sign but I’m these papers it mentions earnest money in the amount of $1000 which was never mentioned to me before now. Should I sign this document? Or is it giving them the opportunity to sue me if I sign it. Id like to be able to upload the document.
A: An attorney would need to review all of your documents to determine your rights and give advice on whether you should sign something. But if you made an offer using an agent in Tennessee, you very likely signed a Purchase and Sale Agreement on the standard TAR form when you made the offer. That offer would have included terms that required you, as the buyer, to make an earnest money deposit, usually within 5 or so days of the seller accepting the offer. Was the offer withdrawn before acceptance? Did the seller receive notice? Did you pay escrow? Lots of things to cover. Consult counsel.
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