The buyer could place a lis pendis on the property pending resolution of a court hearing on return of earnest money and tie up any future closing on the property if the seller does not return it.
Not legal advice jusr what I have seen
In your terms, you are NOT "obligated to sign the Release and Cancellation of Contract for Sale and Purchase if the Buyer failed to qualify for financing[.]" However, whether you SHOULD sign the release depends on many of the issues already addressed below.
The threshold question is whether there is a financing contingency in your contract? If so, was the buyer within the financing contingency period when they delivered their intent to cancel? If there was no financing contingency contemplated in your agreement, the Buyer's failure to qualify for financing would not necessarily give them the right to cancel your contract.
The answer to this threshold question should be pretty clear. If not, you should seek the counsel of an attorney experienced with these issues.
Hope this helps.
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I'm not an attorney but on a standard florida contract "contingent" on the buyer obtaining financing, the buyer has a responsibility to notify you by a certain date if they are not able to obtain financing.
If, let's say your contract was to close in January and yet you're only getting notified right now that the buyer couldn't get financing, you may have a good case for retaining their deposit. This is not legal advice... I am just aware of a small claims case where an owner retained a deposit due to the buyer's negligence in reporting they couldn't qualify for financing in a timely manner.
So hire an attorney for a quick review of your contract. Depending on the amount of the deposit and the length of time you kept the house off of the market awaiting the buyer to close, it may be possible that you can keep the deposit.
Also look at your listing agreement and it may say that the listing agent gets to keep the deposit.
Hire an attorney to review your contract if your listing agreement entitles you to keep 100% of deposits and the deposit is over $500.
This is an excellent Florida firm:
If the contract states should buyer fail to obtain financing, they can withdraw from contract, deposit to be returned;
how does seller not signing release keep buyers in contract?
I have always thought once a buyer withdraws from contract, as provided for in contract, contract is over.
You have a new view, and I would like to learn more about it.
Best regards ,
Susan Callahan, ABR, CNS
Coldwell Banker Residential Real Estate
7205 Estero Blvd # 724
Fort Myers Beach,FL 33931
In general, nothing requires you to sign anything you don't want to.
more than likely the contact had a clause that gave them time to see if they can get loan. and then cancel because they could not get loan and to get their deposit back.
Now if they did as required, and you do not do as contract says, then of course they just may sue you ( I would)
To defend you might spend 10 to 20 grand on legal and then have to pay them and then maybe their legal fees. So you need to find a Lawyer and see how your case might stand up