I signed a purchase/sale agreement to buy a new construction home. I waived financing and inspection in the agreement. But I have not deposited earnest money yet. Now I want to walk away from the deal. The sell threatens to sue me if I do not deposit the earnest money.
You must have consideration for it to be a legal contract. Without a deposit you have no contract. He can’t sue you for anything.
November 4th, 2009 at 3:37 pm
Boring as it sounds, you need to look at the agreement to see what your penalties might be. Are you obligated to find a replacement buyer? Will you have to pay a percentalage of the amount? The contract has the details.
However, in the state of Maryland (and Virginia) you can renege on a contract up to 72 hours with no penalty. You can probably do some googling to find out if this applies in your state.
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November 4th, 2009 at 4:20 pm
If the deposition of earnest money is a clause in the contract you signed you are boligated to post that money. The two other clauses you recite may be illegal in your jurisdiction. contatct a lawyer or legal aid about them
Dan the Answers-Man
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November 4th, 2009 at 4:47 pm
this is what happens when people don’t use realtors!
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November 4th, 2009 at 5:32 pm
You must have consideration for it to be a legal contract. Without a deposit you have no contract. He can’t sue you for anything.
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I’m a REALTOR in Maryland