Q: If a buyer has entered into an agreement with a short sale addendum to purchase a short sale property but decides they no longer desire to purchase it, may the buyer cancel the agreement before the lender has approved or denied the Short Sale?

Reposted by Nancy Yang

-As answered by Brad Boyd, MNAR Legal Counsel, Thomsen, Nybeck, P.A. from the August MNAR Resource

"A: No. Once a buyer and seller have executed a purchase agreement with a short sale contingency addendum, the buyer is contractually obligated to purchase the property if the short sale contingency (and all other applicable contingencies) are satisfied. If buyer simply changes his or her mind and decides not to purchase, this is a breach of the purchase agreement."

Buyers ask all the time if they can offer on a short sale, keep looking for another home, and then cancel on the short sale listing if they find something else.

Bottom line, everyone's time is valuable.


Posted by Nancy Yang on 08/09/2012
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