Buyers Termination of Contract
If your Buyer decides to terminate WITHIN the option period you will need to have the buyer sign the TREC Notice of Termination Form and select box 1 (Buyer is terminating within the Option period).
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If your Buyer decides to terminate OUTSIDE of the option period but still within a contingency, you will need to have the buyer sign the TREC Notice of Termination Form with the correct box checked, in addition to the TREC Release of Earnest Money form WHICH WILL HAVE EARNEST MONEY RETURNED TO THE BUYER, which is signed by all buyers/sellers/Realtors involved.
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If your Buyer decides to terminate WITH NO CONTINGENCIES remaining, you will need to have the buyer sign the TREC Notice of Termination Form in addition to the TREC Release of Earnest Money form WHICH WILL HAVE EARNEST MONEY SENT TO THE SELLER, which is signed by all buyers/sellers/Realtors involved.
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Important: The Release of Earnest Money form serves a dual purpose. In addition to specifying the destination of the earnest money funds, it also constitutes a binding agreement among all parties involved (Seller, Buyer, Listing Agent, and Buyer's Agent). Once signed by all parties, it releases everyone from any further liability, precluding any legal action or claims for specific performance thereafter.
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(1) You are terminating within the option period because you could not come to terms with a repair agreement/concession.
(2) You are terminating because the Buyer is not able to obtain a home loan on the property because of their financing. Ensure you also provide a letter from the lender explaining why the buyer is not eligible for the home loan.
(3) You are terminating because the home does not qualify for a loan, indicating there is an issue with the property, such as problems with the foundation, roof, or similar concerns brought to the attention of the Buyer/Lender from the Appraiser.
(4) You are terminating because your buyer was dissatisfied with the information found in the HOA documents. Most common: Buyer backs out because they want to rent the house out, but the HOA has guidelines against rentals.
(5) If a Sellers disclosure notice was provided after contract or was not provided at all, buyer can terminate through this contingency.
(6) The property did not appraise for the offer price, and your Buyer would like to terminate.
(7) This only applies to Condo's and is rarely used.
(8) Any other reason where Buyer wants to terminate for a provision stated in the 1-4 contract. Please ensure you contact your Broker if utilizing paragraph 8.
Address of Property
Name of the Escrow officer doing the transaction. NOT THE NAME OF THE TITLE COMPANY
The amount of the earnest money set in the initial 1-4 offer/contract. And WHO IS RECEIVING THE MONEY. Usually the Buyers names
Names and signatures of all buyers/Sellers/Realtors involved.