If the sellers sign a mutual release, does that deny them the ability to attempt to sue us for any further damages incurrred because of a failed purchase agreement?

We signed a purchase agreement for a home and selected the option for a buyers inspection. Our home inspector’s report revealed many things, including 7 items that were listed as “major repairs /safety hazards”. Several items directly revealed issues about the windows. We cannot come to an agreement to remedy the home inspection. We would like to be released from the contract but want to insure that the seller will not be able to sue us for anything in the future.

Asked on January 31, 2013 under Business Law, Indiana

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Good question. If you and the sellers of the home that you purchased signed a mutual release as to each other terminating the contract without recourse as to the other where you get your earnest deposit back, then under the laws of all states in this country the properly drawn release should prevent each party from suing the other in the future as to the transaction that you have written about.

I suggest that you consult with a real estate attorney to assist you in drafting up the release.


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