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Sixfooter, Home Buyer in Atlanta, GA

Does buyer need to get seller's signature for termination notice if buyer terminates the agreement and send?

Asked by Sixfooter, Atlanta, GA Thu Apr 30, 2009

the T & R agreement before due dilligence period ends? My agent told me that both parties have to sign in order to disburse earnest money. When I read the T& R agreement, if buyer sends the notice before the due diligence period ends then shall not need the agreement of consent of the seller.

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In the Termination and Release agreement, Section 2 C states that the Release agreement and agreement to disburse earnest money only becomes effective when it is signed by all parties. Your agent is correct. The listing agent needs to get it signed by the seller, if that is not happening your agent should contact the listing agent's broker. You are "in the right" by submitting the Termination and Release before the due diligence period ends. Best Wishes.

Jen Bowman, Broker Associate
Success Realty
404-456-5024
Web Reference: http://www.JenBowman.com
0 votes Thank Flag Link Thu Apr 30, 2009
This question crosses the line from being a real estate question to being a legal matter, so all we, as agents, can tell you is what's typically true.

Typically you can terminate the contract within the due diligence period with or without the seller's signature. Yet, as mentioned by my colleagues, it's best to get the signature of the seller on the release agreement to the earnest money.

Also, typically "your agent" isn't YOUR agent; so always keep in mind that unless you have a contract with "your agent" to be a exclusive buyer's agent, then they represent the seller and the best interests of the seller. All they owe to you is honesty, competence and things along those lines.

So, typically, you will need to make sure you get your intent to terminate communicated to the seller (in writing) within the due diligence period, with or without their signature. Typically you will have the right to terminate, if it's done within that time period.
0 votes Thank Flag Link Fri May 1, 2009
Termination of the contract is not the same thing as dispersement of earnest money. Even if the contract is terminated, both parties signatures is required for dispersement of earnest money - this helps prevent any misunderstandings and ensure both parties are in agreement to what happens to the earnest money.
0 votes Thank Flag Link Fri May 1, 2009
Jim hit it - within the due diligence period it's essentially an option contract and you can terminate for any reason. Present it to the other agent for the seller's signature and follow policy. Your agent's broker needs to ensure that the listing agent's broker is aware of what's going on, given a copy of everything and kept in the loop.

Hank
0 votes Thank Flag Link Fri May 1, 2009
The broker is going to want all parties to the agreement to sign the T & R to be sure they know the intention of the parties. If the Seller refuses to sign, typically the broker can make what is called a "reasonable interpretation of the contract" and release the money to the party they feel should receive the earnest money. If the contract is not clear, they would typically interplead the money into the courts and let a court of law decided who is entitled to the money.
0 votes Thank Flag Link Thu Apr 30, 2009
you have an agent? are you asking a broker question about a specific real estate transaction? If so, you should be getting the answers from your agent/broker.
Web Reference: http://davidwbrower.com
0 votes Thank Flag Link Thu Apr 30, 2009
Yes absolutely

Ed Francell
Prudential Ga Realty
770-633-7576
0 votes Thank Flag Link Thu Apr 30, 2009
Read the second paragrapgh.
0 votes Thank Flag Link Thu Apr 30, 2009
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