If the buyer has no contingencies left to void the contract, and decides not to sign, the buyer is likely in default of the contract, says Rodgers. Bankrate follows a strict editorial policy, Sellers obligations under this paragraph are independent of any other obligations of Seller under this contract., If Buyer fails to comply with this contract, Buyer will be in default, and Seller may (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the Earnest Money as liquidated damages, thereby releasing both parties from this contract. A. Can she sign the TREC notice of buyers termination with out authorizing the release of the EMD? Who will get the Earnest money back. Sellers are not obligated to lower it, however. When the first lender failed, we tried another one, and my mother submitted another $1000 in EM at the request of the sellers. For example, a 3-2-1 rate buydown would lower the homebuyer's interest rate for the first three years and gradually increase over the period. Some issues are big, particularly if they have anything to do with structural issues (foundation problems, crumbling chimney, live termites). Those major issues are the ones that buyers should pay attention to. She still could not obtain financing due to her dti ratio and her low fixed income. Can buyer back out after option period? During those 7 days, the buyer can back out for any reason they want. In my mind, why waste timeget this house back on the market ASAP! But in a wicked twist, he wanted his earnest money back, so he would not sign off with the escrow company, for me to get the funds. Troy Segal is Bankrate's Senior Homeownership Editor, focusing on everything from upkeep and maintenance to building equity and enhancing value. There are many what if possibilities that, while unlikely, you still need to consider. The contract can be terminated by the seller. But this compensation does not influence the information we publish, or the reviews that you see on this site. Your buyers are still required to deposit the earnest money within the time required for delivery. These requirements are detailed in Paragraph A of the addendum. If the buyer decides to continue with the purchase, so must the seller.. How much should you contribute to your 401(k)? TREC (the Texas Real Estate Commission) works to ensure that terms are as clear as possible. If the buyer does not respond to the contingency in time, the seller can back out of the contract and sell to a new buyer. //