Anyone familiar with real estate law ?

The buyer can make up the difference, or the seller can lower his price. But, neither is required to do anything. everything is conditional on financing, including the appraisal. If the lender denys the loan based on low appraisal, the deal is dead. The seller has to refund the money,as the title companies I know will not release any funds until both parties agree to cancelling the contract.


The greater burden here is actually on the seller. If he resells without a release from the first buyer, and the first buyer changes his mind in a week or a month and finds the funds, he can walk in and demand the seller sell it to him per the first contract. That seller would be in a very tight jam, as you can sell house only once at a time.

If the seller agent had a brain in her/his head, they would be begging the first buyer to take the money back,,, just PLEASE sign a release!

as a listing agent on the first day I tell sellers that deposit is worthless,,if there is a problem with anything, give it back and dump the crappy buyer.
otherwise it is like a nasty divorce, and the house is held hostage.


When I am a Buyer agent, I say the same in reverse, if you want to back out of a deal, you remind the seller that you will gladly release them provided you get your money back, as I know you can't resell it unless I do!


The last tidbit is the state does not care who is right or wrong in this case, they only want you to fix the problem, in court if necessary. And most people do not know that if another Buyer presents a seller agent an offer on the day of closing, they are required to present it. And, the seller has the right to accept it.

However, the state also says the seller can be held responsible with consequences
in court should the second buyer object. Goofy, yes?