How to Give Notice Your Seller Is Terminating the Contract
Listing brokers and agents ask the best way for the seller to terminate a contract. The Texas Real Estate Commission recently approved Notice of Seller’s Termination of Contract (TAR 1950, TREC 50-0) for mandatory use by license holders if the seller has the right to terminate. The form gives notice to the buyer that the seller is terminating because the buyer failed to deliver earnest money within the time required or another reason identified in the contract or addendum. And remember to send any notices using the information provided in the Notices paragraph of the contract (Paragraph 20 or 21).
This is a good form but why don’t we have a Notice form for objections to things identified in the title commitment – such as liens, unpaid taxes, etc.
I have often heard an attorney has to review the Title commitment, an agent can’t review the title? maybe that has something to do with it?
agents and brokers cant give legal adviceby law of trec, but always are supposed to recommended getting an abstract done on the property by an attorney if not the agent and broker could be liable for damages.
Easy, simple form.
I just terminate a listing and a contract because seller child support is more than sales price. That form is a good form but we need something more specific about the reason for the termination.
Hi Luz,
If that’s the only house the seller owns and it’s his homestead they should have been able to get the attorney general to release the child support lien without it having to be paid.
What if the appraisal comes in short of the contract sales price and the seller wishes to terminate. Wish that was included on the new form. But it’s a start.
Exactly, all the power to terminate is on the buyers side holding the seller hostage.
I totally agree.
I believe the seller would not need to terminate if the appraisal is short; they can simply refuse to accept the lower price when the buyer asks to amend the contract to the new sales price.
Correct, it’s that simple.
R.I.S.S. I hate it when they fix things that ain’t broke. MANY improvements have been made, however, since I was licensed in 1976. Clarifications can still be made to the timing deadlines.
The seller can not just cancel if appraisal comes up short. The seller if he wishes can refuse to change any terms, then the buyer is left deciding to put up extra or terminate.
Actually, that is the purpose of the Appraisal addendum and 3rd party financing addendum. The seller doesn’t have to agree to a lower price just because it appraised low. And either the buyer makes up the difference between purchase price and appraised value, or they withdraw due to property not qualifying for the financing.
I ALWAYS put in Special Provisions that “Home must appraise for sales price” (Note: My license is currently in Austin due to an injury/surgery. Up to date with CE + hrs for next renewaL
I signed a contract to selk my home. It’s a homestead and now can’t get financing for another home can I back out?
What if seller wants to terminate but buyer hasn’t done anything wrong?
they can’t
They simply cannot. The seller made the decision to sell their home. Once they start that process, there is not turning back just because they changed their mind. They can ask the buyer to release them from the contract and a buyer may or may not do so. But that is a decision they seller has made and now has to live with. The buyer has the termination power because they are the ones spending the money. The seller is the one receiving the money. So it makes sense that this is a commitment that must not allow for a… Read more »
What if the buyers are constantly asking for more off the price. They are doing it verbally. If they put that in writing, could the seller then say “no” and the contract would be cancelled?
Thank you so much for your sound legal counsel, Terry!!!
At least 32 reasons a buyer can terminate. Only one for seller — to become deceased.
That’s not true! There are a few reasons within the contract that a seller can legally terminate.
If the seller refuses to negotiate on repairs or modify the terms of contract based on the amount of repairs would that be a potential reason for a buyer to rescind?
What if the seller becomes deathly ill during the process of the contract and is not capable of selling the house any longer, should the seller discuss with buyer immediately and offer a release of earnest money?
Could you explain how?
What are they
What are some “other” reasons that sellers could use to terminate? I wanted to use this form recently because buyers were being wishy washy and told us they were going to terminate (even though they hadn’t) and started shopping for other homes even after the option period ended. We were locked in until close date (2 weeks out) in this situation and wanted to terminate but was told by TAR Hotline we couldn’t use this form unless it involved failure to deliver EM. What about anticipatory breach?
Anticipatory breach??? Man!!! I sure am glad that ALL of these comments are from Guests and not RE Professionals. Whew!
Best comment of the day… Is there a like button on here 😀!
Love it, love it, love it, isn’t Real Estate Fun!🤪😉
Anticipatory Breach??!!! Are you kidding me?
The seller can’t terminate a contract just because you have a feeling the buyer may terminate. The seller has no right to do that! That’s where the buyers loss of earnest money and possible other financial repercussions would come into play if the buyer did decide to terminate after the option period had ended. The contract clearly lines out the rules so there is no need for the seller to force in new rules or try to beat the buyer to the punch.
Unless the buyer actually breaches the terms of the contract, the seller has to wait it out. If the buyer fulfills all terms, then fails to come to the closing table, the seller can sue for specific performance. Often, that is sufficient threat to hold a buyer’s feet to the fire. Many buyer’s agents think that paragraph of the EMC pertains only to the buyer’s right to sue, but that’s not the case and reminding them of that sentence in Paragraph 15 can often be an enlightening experience.
Anticipatory breach! HUH?!?! ‘We think you are going to terminate, so we are going to do it before you get a chance!’ Folks I hope this answers your questions as to why the seller is not given the opportunity to back out! If you feel that the buyer should put more skin in the game, ask them to put up more earnest money. That way they will not have strong thoughts of backing out ‘just because’ after their option period is over.
Also, if you are allowed to back out just because you feel the buyers are “wishy washy”, how are you any better than the “wishy washy” buyers by backing out for “Anticipatory Breach”? Matter of fact, backing out for that reason is more “wishy washy” than the buyers, in this case. Don’t you think?
Appraiser made comments that repairs need to be made to home when it should be a conventional loan and “as-is” sell. No word from bank as to weather they will loan money. Have no money to do repairs. Hence “as-is” sell
Seller and Buyer agreed to an amendment on price, Seller signed contract and amendment, but we have not received signature from Buyer yet. 2 days have passed and no word, no contract returned to us nor to title. How does Seller move on to other offers? I don’t think this form covers this situation.
Can seller terminate if… There is no consideration which is a requirement for any contract.
Also, what is a boilerplate type document?
I have a signed contract and close in 9 days when out of the blue the seller wishes to terminate the contract due to identity theft. She says that she is being blackmailed to sell her house for money from someone in her prayer group. This was never mentioned to me . I have abided to ALL conditions f the contract and do not wish to terminate. Does the seller have any rights in this case? What happens if she doesn;t show at closing and refuses to move out?
I wish to terminate my contract with a broker. I have requested a termination but the broker refused. My realtor has changed brokers and I specifically requested that realtor not the brokerage firm. Due to personal conflicts between the broker and her realtor my home is being held hostage. I have been placed in the middle unwilling. How do I resolve this? Do I have any rights. The contract does not have language for my terminating the contract with the broker as far as penalties.
Have a situation on Title C, where a contract expired 20
months ago, and on commitment they are requiring a termination from buyer, can the seller sign a termination, if the buyer isn’t willing? Will this be sufficient to remove it from Schedule C?
Can a seller terminate the contract with the new Covid-19 addendum?
Can a seller terminate the sales contract with the new COVID-19 addendum (TXR-2520)
Hello, we are buying a house and under contract. we have completed signed house contract and it has been since April 1st. But per selling agent, the seller’s daughter who said she is the her father’s power of attorney, tried to cancel the contract due to her father is in stage not capable to make any kind of decisions his own. But we have not received any written letter on the cancel the contract from seller’s side. But her brothers said that her father does not have any problems to make decisions his own. They ask us to extend option… Read more »
What options are available for the seller when the buyer at closing will not sign and now wants to terminate the contract?
During the negotiation and contracting to purchase land, my wife and I learned the land had a lease contract with a billboard company. We requested a copy of that contract and noted it contained a 30 day first right of refusal to purchase the property. The buyer’s attorney & real estate agent assured us, and our real estate agent, the billboard company had been notified and had declined its option to purchase. With this knowledge, and before entering into a purchase contract, we insisted that language be added affirming the billboard company had declined its option. With the addendum added,… Read more »
My seller has terminated the contract as Closing didn’t take place as mentioned in contract. However I am 90% close to close the deal as per lender. Appraisal done. But lender taking some time as they are backloads with other stuff .
However seller wants to return earnest money only. But I have already paid additional 15 K as a profit to 3rd party on the top of earnest money. Seller refused to deal with that.
Similar situation, but I am the seller and I didnt even receive any earnest money.
Did this question ever get answered? In the same situation here
Would like to get more information on actions a seller can take when the amount of rent will not equal total amout owed in order to fulfill the contract. Seller has tried increasing rent but got legal notice to not communicate with buyer. Would love some help.
We showed up to closing on January 4, 2021. We brought our cashiers check as asked to the title company. We signed all the closing documents as per our contract in Texas but the sellers didn’t show up because they decided not to sell. As the buyers what can we do?
what can i do if closed on the house and the funds are not available
The title company says that this form is not enough to terminate the contract. I had my sellers sign this form based on Paragraph 15, failure to perform. There is no earnest money involved. I emailed and snail mailed the notice to the buyer, who has not responded.
Is this form signed by my sellers enough to put the house back on the market?
Thank you.
Linda Robertson
512-293-7848
Can a seller back out of a contract, due to back taxes of over $10,000 in Texas, which have a pre-foreclosure of 12-21-2021?
Did this with Homevesters, the i will biy in any condition. Stated that title company could not use a quitclaim deed, it is parent to child and notarized signed by both grantor and grantee.
Can i the seller back out?
My mom signed a pocket-sell contract to sell her home. Is there a way to terminate it? My mom no longer wishes to list with this agent,
What if you were told that you ( Me) was the sole heir of my husband so I didn’t have to share anything with his daughter. But I found out I do and I don’t have enough money for a good down payment and I can’t afford the new mortgage. I want to Terminate the Sell and was told I’d would be sued and made to leave my home.
Is this the method to use if the buyer defauts on the closing date? How does seller terminate in this case?
What are your thoughts on a seller who terminates because he cannot bring the money to the table needed to pay off a lien?
Should he reimburse the buyer for the survey that was purchased accoridng to the terms of the contract?
If there is title issue, coming out with the title commitment, can seller terminate the contract?
Hello,
can seller back out or cancel an executed
commercial contract?
Do commercial contracts (TXR-1801) have 5-day attorney review periods?
Thanks,
Can the Seller terminate the contract if the Buyer does not receive Buyer Approval within the number of days indicated on the Third Party Financing Addendum? Seems the Buyer is in default by not meeting the time requirements. After all, paragraph 2: “Time is of the essence for this paragraph and strict compliance with the time for performance is required.”
I am not an attorney. Some comments on this site are not correct.