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Sam,  in 06484

Agreement of Sale Question

Asked by Sam, 06484 Fri Nov 4, 2011

I placed an agreement of sale on a short sale. The owners accepted. I now am waiting for bank to approve. Can I back out? Will I loose escrow. I submitted checks by they have not been deposited. The Banker is telling me I can back out but my agent is saying I cant, if I do I will loose the 5k I gave in checks.

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Hello Sam,
Marc is correct in that the bank has the final decision on your offer to purchase the home; not the sellers.
Check your contract with the sellers regarding the deposit monies and at what point you are liable for losing it.

Who were the deposit checks made out to?

Do you have the capability of just cancelling them?

The banker says that you can walk so why is your agent saying that your deposit is at risk?

I suggest you discuss it again with your agent and review your contract with the seller.

Good luck!

Laura Feghali
Prudential Connecticut Realty
1 vote Thank Flag Link Fri Nov 4, 2011
you can always back out, but risk losing your deposit if you dont have a valid reason for doing so.
0 votes Thank Flag Link Sun Dec 11, 2011
without a legitimate reason for backing out, yes you can lose your deposit.
0 votes Thank Flag Link Fri Dec 9, 2011
Hi...contact an attorney for best advise...
0 votes Thank Flag Link Thu Nov 10, 2011
Your agreement/contract is with the sellers, not the bank (unless you signed an additional agreement with them). Talk to the sellers and see if they will work with you.
0 votes Thank Flag Link Fri Nov 4, 2011
I agree with Anna here...the contract should have s stipulated timeframe in which the bank needs to respond. If they don't you are free to walk away. If you just 'walk away' due to changing your mind, yes the 5 k is at risk. Be sure to look at the contract closely to see if it addresses this issue.

Good luck to you!
0 votes Thank Flag Link Fri Nov 4, 2011
Much will depend on your contract, therefore review the document, or consider consulting with an attorney who specializes in real estate.
0 votes Thank Flag Link Fri Nov 4, 2011
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