If a contract has been signed (I am the seller) but no action was taken by the buyer (never sent a mortgage commitment, never did the inspection, etc) is it required a mutual release be signed by both parties before I can enter in an agreement with another person for sale of the home? The buyer broker just stopped answering my calls and emails even though I have asked him multiple times to send a mutual release.
The EMD is being held by the buyer broker (I am the listing broker) so I am not concerned about the dispersal. I've just never been in a situation where someone wouldn't sign one or simply stopped communicating. For all intents and purposes the contract is void because of the unfulfilled conditions, correct? Does that still necessitate a mutual release be signed?
Not an attorney... but it sounds like:
A) The buyer did not fulfill their obligations so the contract is null and void and you're entitled to the EMD (assuming that's how the contract is written) and...
B) A mutual release is still required if you want to follow the letter of the law. Could you get away with selling the property after they have not fulfilled their contractual obligations? Probably... I've seen it done before. Should you? No... you should send them a mutual release and if they fail to do so, have your attorney draft up a letter and send it to all parties.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.