Home Buying in El Mirage>Question Details

Matryshka, Home Buyer in Tolleson, AZ

In Arizona can one cancel a short sale contract before the due diligence phase & get back the earnest money

Asked by Matryshka, Tolleson, AZ Fri Nov 4, 2011

if we discover there is a level 3 high risk registered sex offender living within a block of the house that we have an accepted contract on with the seller. But we have yet to receive the contract acceptance from the seller's lender.

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Saleem - your answer assumes the Short Sale Addendum was used. If it wasn't then the buyer cannot cancel at any time ... a short sale contract signed by buyer and seller is an executed contract, the contingency that the lender must approve the short sale is only that - a contingency.
0 votes Thank Flag Link Sat Nov 5, 2011
It depends on what's written in the contract, Janet ... talk to whatever agent you used to make the offer as they will be more familiar with the details of your contract than we would be.
0 votes Thank Flag Link Sat Nov 5, 2011
Maybe, it depends on your contract (and your dates on the contract).
0 votes Thank Flag Link Fri Nov 4, 2011
As others have stated, it depends on how your contract reads. You may even be able to get out as part of the inspection period since this is something of major concern to you. You should consult with your agent for sure.
0 votes Thank Flag Link Fri Nov 4, 2011
Read your contract. Ask your buyer broker, ask an attorney.. those are the patent answers to the questions. But if didn't specifically write something otherwise. Yes you should be able to get your money back. Don't take my word for it. You didn't hire me.. talk to the broker you hired.
0 votes Thank Flag Link Fri Nov 4, 2011
There is no definite answer to this question. It depends on the terms of the contract you signed. Ask your Real Estate Agent if you can cancel. As a rule, until you have an accepted offer from the Bank you can cancel your offer but those terms can be modified by the contract you signed. Check with your Agent or an Attorney.
0 votes Thank Flag Link Fri Nov 4, 2011
There's no such thing as a 'standard' Arizona legal answer to your question. It all depends on the contract and any addenda that you and the seller signed. What do your documents say? What does your Buyer's Agent say? If all else fails, contact and consult with an attorney immediately.
0 votes Thank Flag Link Fri Nov 4, 2011
On a short sale, buyer has that right, to rescind at anythe time as long as the seller has not accepted the offer and the buyer did not sign an agreement stating that they will keep the money in escrow for a specified time.

If you signed an agreement... you still have the 10 days for your due diligence. Your REALTOR should be able to help.
Web Reference: http://www.4CloseMeNot.com
0 votes Thank Flag Link Fri Nov 4, 2011
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