What are my rights to rescind an offer to buy a short sale property?

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What are my rights to rescind an offer to buy a short sale property?

I made an offer for a short sale in another state. The owner accepted and is in the process of waiting for the lending institution. We are approaching 3 months and after various reason I want to rescind. I have the right for inspection but do not want to get that far along (i.e. escrow
). What are my options?

Asked on February 21, 2012 under Real Estate Law, Texas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Under the laws of all states in this country, short sale approval is required by the lending institution holding the liens on the subject property. If the lender does not give the short sale approval, you are under no obligation to close the escrow.

In your situation, since there is no short sale approval and you want to cancel the escrow, I would send written notice to escrow that you elect to not close the sale and request the return of your earnest money.

 


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