Legal Question in Real Estate Law in Virginia

Earnest Money and Release Agreement

We received an offer on our condominium with ''earnest money'' given to the real estate agent by the buyer. We started to contact the mortgage company, electric company, etc so we could have all ready for closing. Yesterday, we received a ''Release agreement'' signed by the people who were buying our condo letting us know they were getting out of the contract and that their money would be used for deposit on a different property. Our agent told us we had to sign it and send it back. This is 12 days since the initial agreement. What assurance would we have had that even up to the day of settlement something like this couldn't happen. I suppose that if we didn't cooperate then there would be more headaches than we would want to have to deal with. It just doesn't seem right and that ''earnest money'' really isn't that at all. Thanks.


Asked on 4/12/09, 7:22 am

1 Answer from Attorneys
Michael Berman Law Offices of Michael A. Berman

Re: Earnest Money and Release Agreement

That is why many people use an attorney when they are involved in the transfer of real estate. The entire matter is covered by contract, and the terms AS THEY ARE WRITTEN, control the process. Those terms can be deleted or modified prior to signing....

If I were you, I would very carefully read the contract and especially the provision about the deposit and default prior to signing anything. If you want an attorney's opinion, my office generally reviews documents under 15 pages for $75. Feel free to write back to [email protected] if there are any other questions.

Mike

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Answered on 4/12/09, 9:58 am


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