CanI get out of a short sale contract that the seller accepted but not yet their bank?

UPDATED: Nov 18, 2011

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CanI get out of a short sale contract that the seller accepted but not yet their bank?

I am a buyer in a short sale contract where the seller has accepted my offer. At this time the sellers bank has not approved the short sale. The appraisal was just done and came in $15,000 above my offer. Can I get out of this contract and have my earnest money refunded?

Asked on November 18, 2011 under Real Estate Law, Florida


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Good question. Assuming you have not waived any contingencies concerning your purchase of the property in a short sale (home inspection or your loan contingency) you can notify the seller that you do not intend to close escrow on the property.

Look at your contract as to the time period that the seller's lender has to sign a short sale addendum which I presume the purchase is subject to such an approval. If there has been no short sale addendum approval as well by the seller's lender, then you should be able to cancel the purchase at this time as well.

I suggest that you consult with a real estate attorney about your purchase contract and your question,

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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