Home & Garden

Can the seller sell house while not signing the mutual release to previous buyer?

  • Last Updated:
  • May 31st, 2007 9:40 am
Tags:
None
[OP]
Jr. Member
Mar 12, 2005
168 posts
1 upvote

Can the seller sell house while not signing the mutual release to previous buyer?

One of my friend recently is in trouble. He cancelled an offer for a house. However, the seller still haven't return his deposit. I just wonder how can the seller still not return the deposit? As I heard, the seller can't sell the house if he didn't sign the mutual release of the deposit.
11 replies
Deal Fanatic
Jan 16, 2003
6223 posts
84 upvotes
Cancelling an purchase agreement on a house? Unless it's because of an inspection or things like that, I'm pretty sure that your friend should lose his deposit. I know that if a buyer would cancel on me I'd definitely keep the deposit.
Deal Addict
User avatar
Dec 24, 2002
4129 posts
232 upvotes
dandon wrote:
May 29th, 2007 3:23 am
One of my friend recently is in trouble. He cancelled an offer for a house. However, the seller still haven't return his deposit. I just wonder how can the seller still not return the deposit? As I heard, the seller can't sell the house if he didn't sign the mutual release of the deposit.

He can sell the house if the buyer has no fulfilled part of his conditions or purchase - however he is opening himself up for a lawsuit if he does not have a mutual release


more info in this case is required
http://www.heatware.com/eval.php?id=14378



I promise not to cut your taxes but I won't raise them either.
Deal Fanatic
User avatar
Jul 18, 2003
6268 posts
60 upvotes
Etobicoke
There are a lot of ways this can be settled. But you're best to speak to a lawyer. Asking for legal advice here is pointless.
[OP]
Jr. Member
Mar 12, 2005
168 posts
1 upvote
rb wrote:
May 29th, 2007 8:49 pm
He can sell the house if the buyer has no fulfilled part of his conditions or purchase - however he is opening himself up for a lawsuit if he does not have a mutual release


more info in this case is required
He said the house failed home inspection, furnace problem. His offer is based on home inspection condition. He already demonstrated that and signed the mutual release. His seller just had no response for near a week.
[OP]
Jr. Member
Mar 12, 2005
168 posts
1 upvote
eelfliw wrote:
May 29th, 2007 9:44 pm
There are a lot of ways this can be settled. But you're best to speak to a lawyer. Asking for legal advice here is pointless.

I just feel very curious why he can't get his deposit back.
Deal Addict
Apr 2, 2003
1358 posts
13 upvotes
Richmond Hill
Assuming that his offer was conditional on a satisfactory inspection, he can change or cancel his offer if a fault is discovered. You say that this was documented (mutual release?).

The deposit should be held in trust with the lawyer. He should ask his lawyer why he has not received the money back. The lawyer does not make any interest on the money so that can't be the reason for the delay.
Deal Addict
Jul 5, 2005
4481 posts
186 upvotes
dandon wrote:
May 30th, 2007 1:54 am
He said the house failed home inspection, furnace problem. His offer is based on home inspection condition. He already demonstrated that and signed the mutual release. His seller just had no response for near a week.
I don't get it. Why does he have to sign a release? When I bought my place I had to sign to say I was waiving conditions...you usually don't file paper work if it fails conditions, you just don't waive conditions.

Also, doesn't he have a real estate lawyer? Your lawyer should be on the phone with the other lawyer getting your money back the day you decide not to go ahead and waive conditions.
Deal Addict
User avatar
Dec 24, 2002
4129 posts
232 upvotes
Canucklehead wrote:
May 30th, 2007 2:51 am
Assuming that his offer was conditional on a satisfactory inspection, he can change or cancel his offer if a fault is discovered. You say that this was documented (mutual release?).

The deposit should be held in trust with the lawyer. He should ask his lawyer why he has not received the money back. The lawyer does not make any interest on the money so that can't be the reason for the delay.
No the deposit is held in trust by the real estate company for the seller - the real estate company MUST release the deposit when and only if a mutual release is signed by BOTH The buyers and sellers ..or if they are directed by court order to do so. The Seller not signing the mutual release is holding up the return of the deposit. Lawyer for buyer should contact sellers brokerage and ask why it is not released.
http://www.heatware.com/eval.php?id=14378



I promise not to cut your taxes but I won't raise them either.
Deal Addict
Nov 26, 2004
1863 posts
135 upvotes
I know this may be a stupid question, but has the real estate company deposited the cheque. if not, the easiest way is just to call the bank and make a stop payment on it.
Deal Addict
User avatar
Dec 24, 2002
4129 posts
232 upvotes
William W wrote:
May 30th, 2007 3:27 pm
I know this may be a stupid question, but has the real estate company deposited the cheque. if not, the easiest way is just to call the bank and make a stop payment on it.
Its supposed to be in the commission trust account within 48 hrs of receipt
http://www.heatware.com/eval.php?id=14378



I promise not to cut your taxes but I won't raise them either.
Deal Addict
Nov 26, 2004
1863 posts
135 upvotes
rb wrote:
May 30th, 2007 7:17 pm
Its supposed to be in the commission trust account within 48 hrs of receipt
That's in theory right? The reason why I asked whether the cheque was cashed is because in the past 5 years, I have made 3 offers that were accepted, and in all three cases (all with different brokers), the real estate company did not deposit the cheque until all conditions are removed.
× < >

Top