Legal Question in Real Estate Law in Michigan
Good Faith Contracts
My husband and I have made an offer on a home and to date, have given $500 in ''good faith'' money, signed an offer to buy, allowed the mortgage lender to perform a FHA home inspection on the property and have tentatively set up a closing date with the realtor and seller. I am wondering if we can now stop the buying process. May we ''get out'' of this somehow and if so, what are the penalties? Our financial situation has drastically changed in the last month and I do not believe we are in a position to now purchase this home. Please advise and thank you for your time.
1 Answer from Attorneys
Re: Good Faith Contracts
Dear Madam:
This is in response to your email of July 18, 2001.
If both you and the sellers of the home have signed a purchase agreement, then you are bound by the terms of that agreement. However, given the limited information you provided me, I cannot tell you what your �costs� will be. Some purchase agreements require that you simply forego the good faith money to the seller. I would have to look at the agreement to make that determination. Furthermore, it is possible that the sellers would be willing to release you from your commitment if they are aware of your financial situation. Regardless, if it is truly impossible to go through with the transaction, I would not delay in informing all interested parties of your predicament. As you can imagine, last minute notices are more difficult to accept.
Sincerely,
Michael D. Eberth
(313) 561-5700
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
