we backed out of a contract during the 10 day due diligence period. My husband was in fear of losing his job

Asked by Lori, Henderson, NV Tue Jun 16, 2009

and so we could not take the chance of a mortgage payment. Now we have been denied our earnest money, declaring damages incurred from the seller , because of this. I thought due diligence was our right to back out for any reason for 10 days. Need some advice

Help the community by answering this question:

+ web reference
Web reference:

Answers

9
Jonathan Abb…, Agent, Las Vegas, NV
Thu Mar 31, 2011
Your buyers agent if you had one didn't give you the back bone necessary to be successful in this situation.
Your earnest is yours, and yes title will not release it unless all party's agree on there paper work to do so.
Your best bet is to sue for earnest if all else fails ... you should have used Vegas' Rockin Realtor , his clients are not robbed! he offers one on one hardcore representation.
0 votes
Trudy Glassm…, Agent, North Bethesda, MD
Sat Oct 23, 2010
I am not licensed in NV to give an answer, in Maryland we have no due diligence period, sorry I suggest you contact your Realtor or title company for assistance...................
0 votes
Keith Sorem, Agent, Glendale, CA
Tue Jun 16, 2009
Lori
The only people advising you should have full knowledge of the paperwork. I would ask your agent, if they cannot their broker, then a real estate attorney.

In most cases during the "contingency period" you can cancel for no reason. You do not need to provide a reason, and with the economy the way it is, I cannot imagine anyone withholding a deposit if you cancel and provide notice in a timely manner.
0 votes
Mr.P, , Arizona
Tue Jun 16, 2009
Well you are in Nevada, I`m in Arizona, two different worlds of real estate, however same desert.

I would like to hear from a Realtor in Nevada.

It does not sound like you have a buyers agent...do you?

If you do have a buyers agent contact their Broker today.

Contact the escrow officer, tell them not to release your money.

Tell Escrow & Broker you want your money back today or you are hiring an Attorney. Give NO REASON why you are canceling, hopefully everything has been verbal. Let your Lawyer do the talking.

In my opinion, whoever is representing you has dropped the ball.

Good Luck
Patrick
0 votes
Marc Infeld, Agent, Potomac, MD
Tue Jun 16, 2009
Lori,

Your earnest money can only be taken away from you if you sign a release giving it back to the seller. Even if you breached the contract without rights, they cannot take your money unless you sign a release. Do you have a buyers agent? If not, then do as Bruce said. Get an attorney right away. Perhaps you should speak to the settlement attorney that was going to conduct the settlement. Did you pick the company to do the settlement? They are supposed to be unbiased in these matters and may show you where there is a legal out in your contract. Did you sign all the required disclosures for the property? If the seller failed to provide all the required disclosures then you may have an out there. Unfortunately, we as agents are not permitted to give legal advice or otherwise any of us here would proably be willing to review your contract for you.
Web Reference:  http://www.marcinfeld.com
0 votes
Kelly Vezzi,…, , Potomac, MD
Tue Jun 16, 2009
Lori,
Alan and Bruce are right on target. There is NO time to waste-consult your Buyers agent and if necessary a real estate attorney to find out what your options are. Our job as a Buyers agent is to ensure that you are aware of any and all contingencies in your contract.
Best of luck to you!
0 votes
Bruce Lemieux, Agent, Gaithersburg, MD
Tue Jun 16, 2009
Hi Lori,

As Alan noted, all of your contingencies are in your contract. In Montgomery County, there isn't a "10 day due diligence" period. If your contract contains a routine home inspection contingency, then you can void the contract during that period and get your deposit returned. You do not need to give a reason.

If the neighborhood has an HOA, then you have 5 days to review the HOA documents. During that period of time, you can void the contract and have your escrow deposit returned. Note - this is 5 days from the receipt of the HOA docs -- not 5 days from contract ratification (like your home inspection). You can void the contract during that time period without giving a reason.

Your buyer agent should be able to explain all of the contingencies to you. If you didn't have representation and worked directly with the listing agent, then you need to consult with a real estate attorney now.

Good luck.
Web Reference:  http://mocorealestate.com/
0 votes
Alan K, , Westminster, MD
Tue Jun 16, 2009
Real estate contracts are different in every state. And there's no law preventing someone from using a contract other than the standard one in a given area. There is no "10 day" period in the MAR (Maryland Assocication of Realtors) contract. In order for you to get your deposit back, you must find a way out that is specified in the contract, such as an inspection, or failure to obtain financing, etc. The whole purpose of the Earnest Money Deposit is to prevent the buyer from backing out without a reason (that both parties agreed to in advance).
0 votes
Fernando Her…, Agent, Gaithersburg, MD
Tue Jun 16, 2009
Fear of losing a job is not a valid reason to back out from a contract. From the seller's perceptive, you should have know this before you wrote an offer.
If I was in the local board and your case comes on front of me, I would rule for the seller all the time.
~sorry
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more