National Agents: How to Void a Contract
If you have a ratified contract, it can still be terminated by the buyer and they can still get their EMD back.. How?
1) Financing contingency: Buyer could not get the financing after all.
(Even if they were pre-approved) Unless the buyer purposely went out and ran up expenses or bought a car, then he can not get out on financing.
2) Home inspection contingency: In the home inspection contingency addendum the buyer has two choices.
- Option to negotiate repairs. This means the buyer may give a list of things for the seller to fix and negotiation begins. This begins negotiation. If it can’t be resolved, buyer can void the contract)
- No option to negotiate repairs. Only option to Void the contract.
3) Homeowners Association documents / Condo documents. These are the rules the new buyer must agree to. It will have things like no 18-wheeler parking, no red front doors etc. The buyer has 3 days to review the HOA/ Condo documents and if not agreeable can cancel the contract. ( Buyer does not even have to give a reason)
Process in voiding the contract:
Go into brightmls.com and into docs+. On the left panel click Forms Library, then Northern Virginia Association of Realtors. Find and fill in these two forms and email them to the listing agent.
1) Notice Voiding Contract: Only buyer needs to sign.
2) Release of Contract and Deposit. (Buyer to receive his EMD back)
This has been a sad “Training in a Minute”.
Keith