Tuesday Takeaway: Seller Three-Day Window
A buyer delivers written notice to a seller within the three days post loan approval period. Is escrow returned to the buyer, or does the seller retain?
The seller has a three-day window after the loan approval date to cancel the contract, if the buyer hasn’t delivered notice to seller of terminating the contract or obtaining loan approval during the loan approval period. If the seller exercises this option, the seller must return the deposit to the buyer. This is a seller option, not a buyer option. If you don’t cancel the contract, convey loan approval or obtain an extension of the loan approval, the seller will have the ability to return the deposit to the buyer and re-list the property. Not only will this upset a buyer but also jeopardize a good commission! Therefore, its always good to set a reminder to regularly communicate with the listing agent during the loan approval period.