Understand that we are here for you 100% and your happiness is our Blessing.
However, there are some things you are going to want to be aware of.
The cancellation of escrow is totally fine and not unusual. Sometimes things come up.
Maybe there are the three D’s are involved. Divorce, Disease, or Drama.
It could be that you found out something wrong with the home you are purchasing you cannot live with and which money cannot fix.
Maybe you found out, as was the case with one of our clients, his X Wife lived next door and he has a restraining order against her.
Whatever the reason, you need to make sure you are protected when cancelling.
Did you sign any of the escrow paperwork that was sent to you without your agent being briefed? This act could create issues related to you getting back your full deposit. We always want our clients to sign ZERO items contained in their mail or email. We will advise what and when to sign when the time comes.
How about other things you signed? Did you sign anything that would put your deposit in jeopardy if you cancelled the transaction? This form is typically called a removal of contingencies, which include things such as your inspection, appraisal and loan contingencies.
After you remove your contingencies – FYI – you probably won’t get your deposit back if you cancel escrow. In addition, the seller maybe able to sue you for up to a total of 3% in damages.
Knowing where you are in a particular transaction, in your specific escrow, what was agreed on by you and when contractual obligations come due, is very important.
Most times buying a home is overwhelming. If you are going to cancel escrow you want to back up your discussion with your agent with an email recapping what they said.
The same advice applies to your lender. If they tell you everything is good with your loan and you are able to remove contingencies, then follow up with them in an email and get their “written down” Blessing.
As Realtors, we are on top of these processes for our clients. We want to ensure they have a safe transaction and that they are well protected.
If you want to cancel your escrow / real estate transaction, you can. Just make sure you are not going to lose your deposit!
Update – escrows handle the deposit differently. Some need personal checks, some need the funds to be wired, and some are looking for a bank or cashiers check.