Buyers do not have to give a reason for terminating a contract under the termination option.
Fact. Though buyers must provide written notice when exercising the termination option, they are not required to give a reason, as it is an unrestricted right to terminate.
Definitely one of the best provisions of the 1-4 Family. It can be used by both Buyers and Sellers.
I’m not sure what you mean that it can be used by a Seller. You might want to clarify.
Hey Stuart, I think you got this confused with something else. The Buyer is paying an Option Fee, to the Seller, for the ‘Unrestricted Right to Terminate’ within a defined period. This does NOT apply to the Seller being able to terminate.
Michael, the above is fact is just referring to buyers. If the seller wants to terminate then it would be easiest before any offer has been submitted or after they received an offer that is far too low and they ended up rejecting it. If they receive a fairly priced offer and the want to terminate then I guess this has to go to the lawyers. I like the Option Fee and whoever came up with that idea needs to get a Nobel Prize for real estate!
I had a situation where a buyer sent a notice of termination marking the unrestricted right to terminate reason on the termination form. He indicated that he did not like the kitchen after all and remodeling it would be to costly. However the buyer never delivered the option fee to the seller, when informed that he had no unrestricted right to terminate, and received the release of earnest money form, he sent another termination notice a week later indicating that he was not able to obtain financing. Can he terminate a contract that was already terminated. Should the buyer get… Read more »
In the case you describe, I believe his earnest money should have been forfeit to the seller
Buyer terminate the contract and send notice to the Seller. NOT by the Realtor terminate the contract in name of buyer. or realtor send notice to Seller & title company. Title company must get atheization from seller to release option money held by them not giving automatic refund to buyer without written notice to seller.