Can we back out now of a real estate FSBO without loosing our ernest deposit of $3K?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can we back out now of a real estate FSBO without loosing our ernest deposit of $3K?

We signed a contract to purchase a home sell by owner FSBO for $312K based on a sellers claim that an exact same home on the same street was sold for $290K and this home had few more upgrades. It turns out they sold it for $283K. Closing scheduled for next week. We followed the mortgage broker the seller recommended. First appraisal came at $23K below the selling price at $289K and loan did not go through. The broker did something and now the home loan is approved through the same banks wholesale lending unit for the sale price. Couple of things without my knowledge, after the contract, home was listed for $330K by the mortgage broker and removed overnight. Probably for loan approval. Can we back out now? And can we get our deposit money back? I spent an additional 1K for home inspection and appraisal.

Asked on October 13, 2012 under Real Estate Law, Texas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Whether or not you can back out of the purchase contract of the home you are writing about without the loss of your $3,000 earnest money depends upon what the purchase agreement states. As such you need to carefully read its terms to see if you have waived all contingencies (loan, inspection and the like). If so, you can back out but may lose your deposit money.

In order to get your question completely answered, you need to consult with a real estate attorney and have him or her read the purchase agreement and discuss the situation with you.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption