How to back out and not lose EMD? Help pleeeassee…

[Account Closed]

Hello everyone! Please help!!! Here is my situation & hopefully you can give me some enlightenment on what to do.

I'm under contract on a property (through FHA loan) in Salem County, NJ.

The asking price is $225K and I offered $235K. Buying ‘as is’, no contingencies. But I asked the listing agent first if there was anything that I NEED TO KNOW before we draw out the contract, hoping that I could trust him. He said it’s a flip, nobody lived there. There are no disclosures. So, I said, okay, I trust you. (It’s legal in NJ without seller disclosures). But isn’t that…

“Real estate agents must make a “reasonable effort to ascertain all material information concerning the physical condition of every property for which he or she accepts agency” and disclose this “to their client or principal and when appropriate to any other party to a transaction.” ??? 

So anyhow, we opened escrow, put my $3K deposit last week. We had an inspection today, and came to find out that there are major termite and mold issues in the house. It looked nice in the inside but of course underneath, I did not see what was the problem. On top of other issues that was from the inspection report.

I was in a hurry to get this property and hoping to close by the 12/30, as my parents are coming from the Philippines 🇵🇭 My mother just got diagnosed of Parkinsons and I am just trying to help them out.

My question is: is there a way I can get out of this contract and get my EMD back?

I’m so sorry for this long message, but I don’t know what to do. Thank you for your time. 😔

If you are a real estate attorney in NJ please let me know. Thank you so much. 

[Jessica Tsao]

FHA loans require an appraisal and the appraiser is required to look for termites and will not approve the loan with termites. A professional inspection is required to determine termites and must be remedied to approve a loan with FHA. did you waive loan contingency? Did you waive appraisal contingency? If you waived all the contingencies? If all else fails, I would talk to your agent, FYI online reviews is really big now days.. . Good Luck