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Terminating Contract

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gseller

Guest
What is the name of your state? What is the name of your state? MD

I entered into a contract to sell my home in May. The contract stated "Time is of the essence" The buyer didn't close on the closing date, and 3 ademdums were subsequently added, basically extending the contract to various dates (54 days in total). The last adendum stated if closing didn't occur before x, seller agrees to forefeit earnest monies. That date came and went and the buyer was still unable to close (lender problems). I notified buyer of contract cancellation under "Time is of the essence" clause, and collected earnest money. I have not received a siged release from contract from the buyer. Can I enter into a new contract with a new buyer? Also, original buyer is seeking advice of a lawyer to recover earnest money. Are the forefeited funds rightfully mine?

Thanks!
 
Last edited:


HomeGuru

Senior Member
gseller said:
What is the name of your state? What is the name of your state? MD

I entered into a contract to sell my home in May. The contract stated "Time is of the essence" The buyer didn't close on the closing date, and 3 ademdums were subsequently added, basically extending the contract to various dates (54 days in total). The last adendum stated if closing didn't occur before x, seller agrees to forefeit earnest monies.

**A: don't you mean, Buyer agrees to forfeit......
***********

That date came and went and the buyer was still unable to close (lender problems). I notified buyer of contract cancellation under "Time is of the essence" clause, and collected earnest money. I have not received a siged release from contract from the buyer. Can I enter into a new contract with a new buyer?

**A: yes, but you are not clear until the Buyer signs the release. For your protection, any new contract you sign should have a clause similar to, "subject to cancellation of the first contract.."
********
Also, original buyer is seeking advice of a lawyer to recover earnest money. Are the forefeited funds rightfully mine?

Thanks!
**A: yes, based on what you have stated in your post.
 

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