Purchase agreement termination letters are important to protect oneself from liabilities occurring due to the cancellation of a sales agreement. In order to make sure that no undue penalties fall on the buyer’s or the seller’s end, writing a purchase agreement termination letter requires caution.
The best way to create a termination letter to purchase agreement is to download the relevant template from CocoSign. This template is available free of cost and is vital in the creation of those letters. It is legally crafted to hold valid in any court of law.
The Agreement Of Termination Letter To Purchase contains the following clauses.
- The purpose of the contract
- The contract date
- The reason for terminating the sale purchase
- Any termination obligations
- Name of Seller and Purchaser
- Name of Seller's Attorney
- Name of Purchaser's Attorney
In order to learn more about purchase agreement termination letters, keep reading below:
What Is a Termination Letter to Purchase Agreement?
When a buyer and seller involved in a sales purchase agreement decide to cancel the agreement, a termination letter to purchase agreement is needed. The termination letter to purchase agreement protects the buyer and seller from any responsibilities listed in the purchase agreement.
The letter also provides details about the financial transactions to be done, such as who will receive the earnest money and how much of it. Once the termination letter is signed and processed, the escrow party holding the earnest money will transfer the funds to the buyer.
When Can a Real Estate Purchase Agreement Be Terminated?
The rules of termination of a real estate purchase agreement can vary from state to state. In general, real estate purchase agreements can be terminated only if either party breaches any clause present in the real estate purchase agreement.
Such breaches generally include delay in providing possession of the property from the seller’s end or delayed repeated payments from the buyer’s end.
The conditions for breach of contract are generally set in the purchase agreement itself. There are often various situations where housing authorities permit termination too.
How to Cancel Purchase Agreements?
In order to cancel a real estate purchase agreement, follow the steps below:
Step 1: Downloading Termination Letter
Firstly, it is important to download the correct termination letter for real estate purchase agreements. This termination letter is available here at CocoSign and can be downloaded for free.
Step 2: Buyer-Seller Details
Next, you can fill in the details of the buyer and the seller parties in the termination letter. There are separate fields provided for this information. You also need to provide the date on which the buyer and seller entered into a purchase agreement.
Step 3: Providing Monetary Details
It is important to list the dollar amount that is due towards the buyer or the seller after the termination of the purchase agreement. There are dedicated fields in the termination letter for filling this amount and naming the parties to which it is due.
Step 4: Signatures
There are various signatures needed on a real estate purchase agreement termination letter. It needs to be signed by the buyer, the seller, and the agent executing the letter. Every signature should be accompanied by the date on which the person is signing the letter.
Endnotes
When a cancellation occurs on a real estate purchase agreement, having a termination letter is quite important to protect oneself from liabilities. Signing a termination letter is quite easy, all you need is to download the termination letter from CocoSign.
This letter contains all the necessary fields where you can enter the required information. There is space provided for your signature and the signatures of other parties. The best part is that the form can be edited and made to suit your requirements.
CocoSign also provides a library of other agreements and form templates as well. Simply browse through CocoSign’s library and download any templates you want, completely free.