How do I go about rescinding a real estate contract if one of the contingencies cannot be met?

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How do I go about rescinding a real estate contract if one of the contingencies cannot be met?

I entered a contract to purchase a home. There was a mortgage contingency. I applied to 3 mortgage companies and was denied by each. Under the terms of my contract it states that the contract is null and void and deposits are refunded if I can’t get a mortgage. How do I go about doing that? A rescind letter?

Asked on November 29, 2011 under Real Estate Law, New Jersey

Answers:

Michael D. Siegel / Siegel & Siegel, P.C.

Answered 10 years ago | Contributor

Do you have a lawyer?  If so the lawyer should send it.  If not, then I agree with SJZ's answer.  However, I would not send the back-up information unless the other side gave you a hard time.

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Yes, a letter stating the efforts you have made to obtain a mortgage, providing proof that you were not granted one (e.g. copies of letters denying your application), and citing or quoting the relevant terms from the contract of sale (i.e. the contingency) should do it. Send the letter in some way or ways you can prove delivery (e.g. by federal express with tracking; by certified mail, return receipt requested). You should probably send the letter to the seller and the seller's attorney, if any. You might also provide a heads-up to the broker, but don't necessarily need to send the formal letter (though you can, and might not be bad idea to).


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