REAL ESTATE TRANSACTIONS - Essay Example

The attorney may in that case be included in the verification of the agreements. Once the seller signs the contract, he/she is bound by it. Because most of the signed contracts cannot be cancelled, the seller or the purchaser should never sign it unless he/she has shopped around for un-doubtful bargain and had enough time to think over it. When making a real estate sale, all siblings of the seller must have agreed with the specific amount of money that the buyer is willing to give otherwise the seller cannot sign the contract.

However, a contract should be entered into to function as a binding agreement that contains clearly written escape clauses that are outlined in its text. Therefore, the buyer and the seller should enter into the transaction in full agreement with the listed terms as well as with provisional clauses that allow either the seller or the buyer to break the contract. Before the transaction has closed, the seller, just like the buyer, holds the right to cancel the contract through some procedures (Korngold and Goldstein 56). Dr. Jones should talk to her agent and explain why he wants to get out of the contract.

He should discuss the matter with the broker about whether he is not happy with the provisions of the buyer. Although escape clauses are mostly built for the buyer, sellers can as well have their own exit opportunities. An estate sale requires total agreements from the rest of the family members. If the seller’s siblings disagree over the price of the sale, the contract may have provisions that allow for its cancellation. Therefore, if the buyer is not willing to break the contract, Dr. Jones can file a case in the court that the rest of his family members have disagreed with the sale price of the land and call for its cancellation. Dr. Jones does not have any right to cancel the contract after the close of the transaction unless he engages in a discussion with the brokers, which can only allow for the change after agreements with the broker and the purchaser.

Question2: After the option, period and the buyer feels like terminating the agreement and get back their deposit or the earnest money, the title company asks the both the seller and the buyer to sign a release form of their earnest money. Both parties must sign the release form that points out to whom the earnest money should go and the specific amounts before the company disburses them (Korngold 97). If the seller or the buyer cancels a valid agreement on a contract without legal justification, the person who makes the cancellation may be liable for some damages by the other person.

The buyer will run the risk of losing the deposit that was placed on the estate at the time of signing of the purchase offer. Either of the two parties may be held responsible for the broker’s commission. In the same way, if the buyer decides to terminate the contract after the signing, he /she hold the risk of losing his/her earnest money. Abby can decide to notify to Dr. Jones that she wants to terminate the contract and the seller can give her earnest money back. However, this is only applicable during the option period, the due inspection and diligence period.

It becomes trickier when the option period passes. According to the agreement that had been signed by the three parties, Abby did not provide any condition for the purchase of the estate. Before a signature is laid on the contract agreement, the two