In normal sales, a seller certainly CAN entertain other offers if a counter is on the table. A deal is not a deal unless it is accepted UNLESS you have something in writing from the seller that they will not entertain other offers while you are negotiating. A counter offer by a seller is simply an offer to you to buy the house on those terms. Unless the counter is accepted, the seller may may sell to someone else.... more
I am pretty confused by the answers! If your contract was agreed upon between buyer and seller - it was ratified! your earnest money gets deposited.
Vivianne's answer was perfect. Third party approval is just a contingency. Every time we write an offer involving a loan, we have a third party contingency on the buyer side and that would be the loan getting approved. The contract is turned in, EMD is deposited in accordance with the law. If the third party did not approve the sale, that contingency is not met and you ask for a release and request your EMD back.... more