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Termination Letter to Purchase Agreement

A termination letter to a purchase agreement is the formal cancellation of an active contract to sell a home. Usually, when the termination of the purchase agreement is mutually accepted, the buyer is entitled to recover any earnest money deposited at the contract’s origination.

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Last updated September 21st, 2024

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A termination letter to a purchase agreement is the formal cancellation of an active contract to sell a home. Usually, when the termination of the purchase agreement is mutually accepted, the buyer is entitled to recover any earnest money deposited at the contract’s origination.

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Within the form, the parties can stipulate the amount of money that is to be returned and who it will be distributed to. Once all the necessary information has been provided, the form will require the seller, buyer, and any agents involved to sign the letter in order to put the document into effect. (This can only be achieved if both parties can come to an agreement to terminate the recorded obligations.)

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