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question iconWe are under contract on a house but have decided, for various reasons, to move on from this house. We have not reached the loan approval deadline and we are not satisfied with the conditions of our current loan. If we break this contract due to lack of funding prior to the loan approval deadline, would we be considered in default? Our contract with the buyers agent states the following “If any transaction fails to close as a result of the seller’s default, with no fault on the part of Buyer, the Success Fee will be waived. If any transaction fails to close as a result of Buyer’s default, in whole or in part, the Success Fee will not be waived; such fee is payable upon Buyer’s default, but not later than the date that the closing of the transaction was to have occurred.” We are concerned the buyers agent will attempt to retrieve the success fee from us if we terminate the purchase contract.
answer icon

The Buy/Sell Agreement promulgated by the Colo Real Estate Commission is very friendly to buyers. Specifically, it provides multiple opportunities for buyers to terminate the contract "at buyer's sole subjective discretion." Your termination of the Buy/Sell on right would not be considered a "Buyer's Default' under your contract with your Agent.


The foregoing information is general information only and should not be relied upon to take, or fail to take, legal action. No attorney-client relationship is formed by this information. __The only manner to obtain complete and adequate legal advice is to consult with an attorney.__
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Bill Henry
Real EstateAug 24, 2020
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