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Video instructions and help with filling out and completing real estate earnest money contract pdf
Hi there Emily Farber with Lepik Cregar Realtors and Iowa City Iowa thanks for joining me today's video covers the topic of what happens if you change your mind buyers you enter a contract all is going grand until suddenly it's not you've had a change of heart you've got cold feet your circumstances have changed whatever the reason you no longer wish to buy the home that you have set forth what do you do now what might happen what could be the potential outcomes of such a decision stay tuned all right let me start this off by saying I am NOT an attorney I don't play one on TV I don't have a night job as an attorney so if you have legal questions I highly highly recommend that you consult a real estate attorney when you find a property that you're interested in and you write a purchase agreement on it you enter a legal and binding contract once the terms of that agreement have been met if it's got a buyer signature a seller signature and there has been consideration ak8 earnest money presented and accepted you are in a legal and binding contract now if you change your mind right away before the seller has even signed there still is time to back out have your agent write a written withdrawal with a time stamp on it and have that presented to the sellers agent no harm no foul you've stopped everything before it even gets moving forward but if you are already into an accepted purchase agreement things are a little bit stickier if you change your mind part of your purchase agreement should include several different contingencies which are there to protect you as the buyer and prpotential exits out of the contract if you may need them some examples of common contingencies are inspections if something comes up upon your inspection that you can't live with that you're very concerned about and that you and the seller cannot come to terms with on how that is going to be dealt with that provides you with an exit out of the contract where you can legally leave the contract and have the earnest money returned to you some other common contingencies and purchase agreements are financing if your financing falls through that provides another exit for you to leave the contract and keep your earnest money as you work your way through your contingencies and do your due diligence of investigations eventually you have to release those contingencies in writing once a contingency is released it's like that exit door is shut that is no longer an option for you eventually you will reach a point in the contract where all of those exit doors are shut and you're just waiting for closing so what happens if something changes you freak out and you get cold feet your circumstance has changed maybe you got a job promotion and you're leaving