[Best of 2022] Termination of Real Estate Contract by Buyer: A Guide for Agents and Buyers
We're continuing an annual tradition of counting down our top 10 articles of the year. The following article was originally published in June and is #3 in our countdown. See #4 here. As a buyer, realizing you want to back out of a contract can be frightening and overwhelming. You probably have many questions. Can you back out of buying a house after signing a contract? Do you get your earnest money back? For real estate agents, learning that a client wants to back out also raises many questions and concerns. Termination of real estate contract by a buyer is possible, but it can only be done in certain circumstances to avoid significant consequences. It must also be done properly. Here is what buyers and agents need to know. Agents: Know When to Request a Termination or Release! Make sure you know your state's laws on real estate contract termination versus release and how it affects your client's rights. Only a release of contract releases both parties from liability. If your buyer client has a termination right, the earnest money cannot be released to them without a signed release of contract from the seller or a court order in many states. Automatically asking for a release of contract isn't always the right move. If the buyer has a legitimate right to terminate and the seller does not agree to sign a release, the termination deadline may be missed and the buyer's right to terminate can be forfeited. Can a Buyer Back Out of a Purchase Agreement? When it comes to canceling a real estate contract, you may hear two terms used: release and terminate. These terms are very different. Terminating a real estate contract is something one party does unilaterally when they have the legal right to do so. Real estate contract termination by a buyer may be done when the inspection turns up a problem the seller refuses to fix (with an inspection contingency), for example. A release from a real estate contact is an action the seller and buyer must take together. This move releases the buyer and/or seller from their obligations under the contract. If the buyer does not have cause to terminate the contract, the seller can agree to release them in exchange for forfeiting the earnest money, as an example. In most states, buyers have many opportunities to legally back out of a real estate purchase agreement. The typical real estate contract has several contingencies that give the buyer a legal way to terminate the contract and have their earnest money refunded. Even if these contingencies are waived, many states have a period during which buyers can change their mind. When Is It Too Late to Back Out of Buying a House? It's important to carefully check the purchase agreement and deadlines attached. There may be one dozen or more deadlines to cancel a real estate contract depending on state law and contingencies. For example, an option period may be 7 to 10 days once the contract takes effect. During this time, the buyer may be able to back out for almost any reason. Once this period ends, terminating the contract may only be allowed pursuant to specific clauses in the contract. After reviewing the seller's disclosures, there may be another deadline that allows the buyer to terminate. This may be up to five days. Can a buyer cancel an offer to purchase? The purchase agreement is not a legal contract until it is signed by both parties. A buyer can retract an offer if the seller has not yet responded. If the seller counteroffers, the buyer can still back out. Options for terminating a real estate contract are more limited once an offer is accepted and the contract is signed. Can You Cancel a House Sale Before Closing? Options for Buyers Depending on the contract, a buyer may be able to terminate a real estate contract based on a number of contingencies. Here are the most common options for how to get out of a house contract once it's signed by both parties. Inspection or option period: This is usually a fixed period of time (usually 7 to 10 days) during which the buyer can back out of the contract. There is usually a non-refundable fee for an option period. Financing contingency: This contingency clause allows the buyer to back out if they fail to secure financing. Property approval or appraisal contingency: The buyer can back out if the home does not appraise for at least the purchase price or the property is otherwise not accepted by the lender if the seller will not drop the price and the buyer does not want to pay the difference. Inspection contingency: This clause may allow the buyer to back out before the applicable deadline if they are unsatisfied with the home inspection, the seller refuses to make repairs or reduce the purchase price, or if repairs are estimated to cost more than a certain amount. The seller won't make agreed-upon repairs or treatments: In this case, the seller may be in default of the contract and the buyer can back out. Title issues: Buyers generally have the right to back out of a contract if issues are found with the title and the seller does not fix them before the deadline. These are only common options; there may be other options available to a buyer who wants to back out of a contract. For instance, the seller may have failed to give required disclosures by the deadline. How to Terminate a Real Estate Contract Terminating a real estate contract requires following a specific procedure based on the state. In general, the buyer and their agent must give proper notice of buyer's termination of contract. In some states, there is a specific form to use that informs the seller the contract is terminated and lists the clauses the allows the buyer to terminate. Termination of Contract and Release of Earnest Money In most states, what happens to the earnest money depends on the contract provisions. Earnest money is generally returned to the buyer in one of two scenarios: Buyer cancellation of purchase agreement under a termination right, or Termination of real estate contract by seller The seller generally keeps the earnest money if the buyer backs out of the contract without legal cause. In most states, the buyer's agent must request a release of contract. This must be signed by the seller to release both parties of liability and return the earnest money to the buyer. If the seller refuses to do so, a court may need to decide on the case. Consequences of Breaking a Real Estate Contract There may be financial consequences of terminating a real estate contract, depending on the reason. The farther into the process, the more likely (and more expensive) these consequences tend to be. When a buyer backs out of a contract that's been signed, their earnest money is at risk. The average earnest money amount is 1% to 3% of the purchase price, which is anywhere from $3,700 to more than $11,000 based on the average U.S. home price. For the buyer, getting the earnest money back usually requires the seller signing a release of contract. If they do not, the earnest money can be tied up in a time-consuming process with the case heard in court. If a buyer backs out of a sale without cause for terminating the contract, they forfeit their earnest money and may even be sued for additional damages. Can Seller Sue Buyer for Backing Out? While the law varies by state, a seller can sue a buyer for backing out of a sale – but it's complicated and uncommon. In general, buyers can be sued if they do not properly terminate a contract based on a contingency. In this case, the seller can sue them for specific performance (following through with the purchase) or money damages for breach of contract. If this happens, the earnest money does not necessarily limit the damages. That means a buyer can be sued for damages even beyond the deposit they put down. It's crucial for buyers and agents to understand not only when a buyer can back out of a real estate contract but how it should be done to avoid potentially serious consequences. To view the original article, visit the Transactly blog.

The All-new Authentisign: See What's Next for Transactions (zipForm Edition) Users
Lone Wolf has been working hard to make sure that this add-on, previously known as zipLogix Digital Ink 2.0 powered by Authentisign, is packed with powerful improvements. With this new Authentisign, we know how important it is for agents and signers to be able to use it easily. Here's what you can expect to see: a simpler way to collect digital signatures for transactions. But first, what is Authentisign? Trusted by 450,000 real estate professionals and counting, Authentisign is Lone Wolf's popular eSignature tool. Thanks to its connection to Transactions and our forms editor, it brings contract authoring and signing together into a single connected experience, so agents can complete signings in three easy steps and up to 60% faster (more on that later!). As part of our competitive edge, we've also added personalized email templates and signature/markup settings, and the ability to force signings as "completed" when a signature is no longer required. While we're bringing the all-new Authentisign to Transactions (zipForm Edition) throughout the next few months, it's important to highlight that it's been offered in Transactions (TransactionDesk Edition) for a couple of years now. The result? A steady all-time user rating of 4.5/5 from 1.8 million real estate professionals and clients, and a whopping 17 million signatures completed so far in this year alone. And with the new features we've brought on for Transactions (zipForms Edition), there's undoubtedly more to come. Read on to learn about the all-new Authentisign's top three improvements. 1. Easier workflows for signature creation Lone Wolf has improved signature creation workflows, so they're much easier than before. You can make, save, and select default annotation properties, which helps you save time on commonly chosen properties. We also removed the signing wizard to make for a smoother process overall. Instead, you'll find steps integrated into more natural workflows, so you can create and request signatures in just a few easy clicks. 2. Improved experience for signers The all-new Authentisign optimizes the signing design for each document to create a simpler experience for requested signers. Whether it's an agent, client, or another party who needs to sign, they'll be able to navigate an intuitive UI that looks much simpler and cleaner than before. Clients can sign at any time and on any web browser or mobile device without needing to download software or register for an account beforehand. When signing, they won't be prompted for a signature until they click on a signature block. Blocks are now color-coded for easier differentiation, too. 3. Faster performance for users With the latest performance improvements, users can now complete a signing up to 60% faster, which saves time and increases productivity for brokers, agents, and clients. Broker and agent users can now view and take signing actions in one place, as well as access real-time insights into the status of all ongoing signatures. Signers can leave feedback through a Rejected Reasons dropdown option, which helps to identify and address an issue quickly. Signers can also provide feedback after they've completed a signing to highlight any issues or positive points about the experience. Everything adds up—to a powerful all-new Authentisign Overall, the newest version of the all-new Authentisign has a modern look and feel, and the steadfast performance to match. With a simple three-step process for document signings, multiple layers of security protection for eSignatures, and more, this tool offers an easy experience for users and signers. The phased rollout for the all-new Authentisign starts on September 6 and will continue into November 2022. Stay on the lookout for in-product messages to see when it will be available in your market! To view the original article, visit the Lone Wolf blog.

Lone Wolf Provides Agent Business Bundle for $199 Per Year
One of the outstanding opportunities created by the large scale of a company is the ability to bundle services that deliver outstanding value to customers. Lone Wolf is the largest software provider in the real estate industry with a wide variety of software services to suit MLSs, associations, brokers, teams, agents and transaction coordinators. At the National Association of REALTORS® Legislative Meetings in Washington, D.C., Lone Wolf announced that associations representing over 665,000 agents in the U.S. have renewed Transactions (zipForm Edition) as a member benefit. As a sweetener, some of those associations also opted to receive full transaction capabilities, along with eSignature from zipLogix Digital Ink (powered by Authentisign), LionDesk CRM, and the zipForm Mobile app. If you will recall, before NAR sold zipLogix to Lone Wolf, Transactions (zipForm Edition) was a member benefit of NAR known as zipForm Plus. Now agents/associations need to pay for the service again. The Bundle For those agents who are not in a market where their state association, local association or MLS has renewed with Lone Wolf, two bundles are being made available for agents—the base member benefit for $179 per year, and the premium bundle for $199 per year. This bundle contains the LionDesk CRM—another company acquired by Lone Wolf—as well as the built-in eSignature solution, zipLogix Digital Ink (powered by Authentisign). It is a lot of software for a pretty low price: Transaction Management Forms Management Unlimited Document Storage eSignatures CRM In addition to the low price, agents and their clients will have access to the Lone Wolf Marketplace, making it easy to order title service, home warranty, insurance quotes, and integrated applications like Earnnest (safe earnest money solution), Updater (moving concierge), RentSpree (rental marketplace), and Seller Shield (disclosures). To view the original article, visit the WAV Group blog.

RPR Zips You through zipForm Integration
RPR's integration with zipForm offers yet another time-saving benefit for Realtors. With it, there's no need to jump from one platform to another when creating sales forms. Simply go directly to RPR's Property Details page from zipForm, and vice versa, with one simple click. The integration also allows Realtors to create new zipForm transactions using public records information from RPR. Take advantage of the RPR-zipForms interaction by: Logging in, selecting your photo, and accessing your RPR profile Clicking on "Connected Apps" (scroll down and it's on the right) Activating the RPR-zipForms connection, which you can now find in the "Additional Resources" box on the right Watch this under one minute video to see all of the above in action: To view the original article, visit the RPR blog.

Keep Yourself Trending with the NEW zipForm® Mobile
Monday, March 13, 2017 at 8:00 AM PST Start a Transaction on the Go with the Mobile device of your choice. The new zipForm® Mobile brings many of the zipForm® Plus functions directly to your phone or tablet. Create a New Transaction Add a Template Add Property information Add Parties information Fill in additional information using MLS-Connect (optional) Start a digital signing with both TouchSign® and zipLogix Digital Ink® Register now!

7 Apps that Make Dealing with PDFs Easy
When's the last time you received important real estate documents as a JPG or other image file? How about a lengthy disclosure where each page was its own, separate PDF file? Such is life in today's digital world. Fortunately, there are tools out there that can make managing real estate documents easier. We've rounded up a few of the best apps for editing, merging, reducing, and converting real estate documents into the industry standard file format--the PDF. 1. Adobe Acrobat - Let's start with the obvious choice. As the gold standard of PDF editors, Acrobat can handle pretty much any task you throw at it. The downside? It's pretty expensive. Buying the program outright costs several hundred dollars, and Adobe's monthly pay-as-you-go plan starts at $12.99 and requires an annual commitment. Not exactly gentle on the wallet--and that's exactly why we created this list. The rest of the apps highlighted in this article are free or low(er) cost. Check 'em out below! 2. PDFescape - This is a perennial favorite with agents. PDFescape is a free online tool that lets you edit, annotate, and fill out PDFs. There's also a desktop version that runs on your computer--great for when you don't have an internet connection (or it's painfully slow). For advanced features, like converting file types, there are premium versions that run $3 to $6 per month. 3. PrimoPDF - Need to convert a Word doc, PowerPoint, or Excel file to a PDF (or vice versa)? PrimoPDF is a free tool that can do the trick. You can also create PDFs and do basic editing. PrimoPDF is software that you download to your Windows computer. Don't have a Windows machine? Check out our next option.

zipForm Plus Timely Tips and Tricks (9/14)
Wednesday, September 14, 2016 at 12:00 PM PDT Use zipForm® Plus and its time-saving features to get you up and running for your next deal! Enhanced User Interface, E-Signature Integration, Notifications, and Advanced Search Tools are all available to help create a smooth transaction process. Build consistency with time-saving templates Complete forms with Cloud Integration capabilities Quickly search and filter transactions and Save results Register now!

Transaction Management made easy: NAR & zipLogix New Member Benefit (8/22)
Monday, August 22, 2016 at 11:00 AM PDT In 2016, National Association of REALTORS® and zipLogix™ offer REALTORS zipTMS™ as a nationwide benefit. Each member will have access to technology that has been shaped from over 20 years of industry expertise and feedback from REALTORS® across the nation. See how zipTMS™ Transaction Management System allows you to optimize workflow offering a comprehensive set of tools that provide the essential online workplace for real estate professionals. Features of zipTMS™ include: Managing transactions with task checklists; Create checklist templates; Adjust the task view with calendar or list mode; zipForm® Plus notifications for tasks; Transaction history records all tasks and more! Register now!

zipForm® Plus and Paperless Transactions (6/15)
Wednesday, June 15, 2016 at 10:00 AM PDT Use zipForm® Plus and it's time-saving features to get you up and running for your next deal! Enhanced User Interface, E-Signature Integration, Notifications, and Advanced Search Tools are all available to help create a smooth transaction process. Create Templates Complete Forms Capture Contact information Register now!

The Plus Side of Auto-Populating Forms (and the pitfalls!)
Here at RE Technology, we're huge advocates of anything that saves time for real estate agents. After all, saving time is one of the key benefits of real estate technology! If a tool is creating work for you, you need to take a hard look at the cost-benefit analysis. Today, I'm going to focus on just one timesaving tool, auto-populating forms, and the pitfalls you should be aware of in order to be successful with them. The Plus Side State real estate associations and the National Association of REALTORS® have worked with legislators to create forms that protect all the parties to a transaction. This is a huge leap from the days when real estate agents had to lawyer every document for every transaction. But forms are just the beginning. Modern technology has taken it a step further with the ability to auto-populate these forms. Depending on the complexity of a transaction, the total number of pages of documents can exceed 300. Some forms providers have replaced "dumb forms" with "smart forms." To clarify, dumb forms require you to enter the buyer's name every single time it is required – which is often as many as 20 forms in a transaction. Smart fields, however, allow you to enter the information just once and it populates everywhere else in the documents that that information is required.

Using Your iPad with Buyers
Today about half of the real estate professionals in real estate have iPads. As business professionals, having information and resources at your fingertips can be a significant way to improve your business. This has always been the promise of mobile computing, but laptops are too clunky to carry around, and for most of us, the size of the keypad and mobile screen on a mobile phone are too small for any significant jobs. The iPad turns out to be just the right size. Up until recently, MLS systems were off the mobile grid for most real estate agents. Today, things are much better. The leading MLS solutions are either adopting responsive designs that allow you to access the MLS thorough the Safari browser on the iPad, or offer apps that allow MLS search. These advances are terrific time savers for agents who need access to the MLS to research buyer needs anywhere, anytime on the iPad. A new trend emerging with the iPad is the buyer CMA. There are a number of companies now offering CMA solutions that work great on the iPad and help agents deliver outstanding presentations that can be created in minutes. If you have not looked into CMA solutions for the iPad, check out these mobile-friendly products: Cloud CMA ToolKitCMA TouchCMA Realtors Property Resource®

Product Review: Form Simplicity
There is a world of solutions available to agents and brokers. It's no surprise, though--real estate is one of the largest sectors of our economy, and many technology companies have recognized our industry for the opportunity that it offers. While there are plenty of solutions offered by industry "outsiders," a smaller number are created by professionals with hands-on real estate experience. Today, we're going to introduce you to one such solution. Form Simplicity is a transaction management solution created by a professional real estate organization, Florida Realtors®. Its ongoing development is, in part, shaped by a panel of REALTOR® members who ensure that the program stays in step with what agents and brokers need to be successful. A Closer Look True to its name, Form Simplicity is simple. Right from the home page, users will notice its pared down interface that offers only what agents need to work fast.

Closing the Circle with Electronic Signatures
To borrow from The Lion King, even real estate documents have a "circle of life." They begin as forms and end up as documents. Closing that circle has gotten infinitely easier with the advent of electronic signatures. You're probably nodding your head, agreeing that this is a no-brainer. But, the truth is that digital signatures have been legal for many years (protected by federal statute) and yet adoption was growing at a snail's pace until only recently. What caused this shift? Consumers are the driving force behind the growth of electronic signatures. "The downturn in the real estate market led to the growth of investors making deals in other states. Those out-of-state buyers loved the convenience of electronic signatures," explains Marilyn Wilson, co-founder of the WAV Group. "International investors also became much more active during the real estate crash. They, too, were the perfect user group for electronic signatures." Wilson also points to eCommerce as a driver of electronic signature adoption. "Consumers are used to entirely digital transactions and feel comfortable when their real estate transactions are digital as well," she says. Wilson and other thought leaders discussed a range of issues associated with electronic signatures in their webinar, "Not All Electronic Signatures Are Created Equal." You can view their full discussion here:

Product Review: zipForm® Plus
Have you heard about zipForm® Plus? It's the new web-based version of zipForm®, the flagship product of real estate forms pioneer zipLogix. zipForm® Plus takes all the functionality that users are accustomed to and wraps it in a new, more attractive package. The updates are more than just superficial, though. zipForm® has always been a powerhouse of a solution--sometimes to an intimidating degree. zipForm® Plus' clean new interface makes navigating the program simpler, more efficient and, yes, more enjoyable for the end user. Here a quick rundown of what's new in zipForm® Plus: 100% browser based - no plug-ins or software installation required Ability to personalize files and emails Full screen form-filling capability Real-time search Integration with third party real estate applications (for the most up-to-date information, click here) zipVault integrated document storage Advanced search capabilities with real time results Feedback link for instant suggestions

Agents as Liaison between Client and Contract
So many real estate processes have been digitized and automated – it's understandable that many professionals and consumers are afraid that the personal element of real estate is getting lost in the shuffle. You, the real estate agent, have the power to be the solution to this problem. You can demonstrate that technology will enhance personal connections rather than diluting them. Real estate agents have to have two very distinct, often contradicting skill sets. You need to understand the nuts and bolts of impersonal legal documents, but also have a warm and appealing interpersonal style. Technology shouldn't further separate these two sides of your personality. Instead, it should be used to draw them together. Contracts are where this fusion can really be seen. They are notoriously confusing to a layperson, so your buyers or sellers need your support in making sense of them. It's a perfect opportunity to enlighten rather than push-away your client – and technology can help. "There's no replacement for responding to your clients' questions or concerns," says Greg Robertson of Cloud CMA. "But there are ways that technology can be used to enhance and support this response. Cloud CMA was built with this in mind. Reports are approachable for the agent's consumer."

How to Make Loan Pre-approvals Work in Your Favor
Agents, have you ever had this happen to you? An enthusiastic would-be buyer calls you up, eager for you to show them a certain property. "I'd love to help you out," you might reply. "Go ahead and send me a copy of your pre-approval letter and I'll get in contact with the listing agent." Did the mere mention of the word "pre-approval" stop the conversation dead in its tracks? Perhaps the caller was just an inexperienced buyer, or they were a lookie-loo. Regardless, no agent should waste their time on prospects who are not pre-approved for a mortgage. Consumers with pre-approvals in hand are serious about purchasing a home. As an agent, your time is precious. You should be spending your time with the prospects most likely to result in a completed transaction. However, don't think of unapproved buyers as a hassle--think of them as an opportunity. By tying the pre-approval process to the signing of a buyer representation agreement, you come out ahead--and with a qualified new client! Here's how.

Are You Meeting Your Goals for 2011?
June is officially here, marking the middle of the year. It's time to start asking yourself if you've accomplished, or set the wheels in motion to accomplish, the goals set early in the year. For many Realtors®, that goal was to ditch traditional real estate practices and adopt the right technology solution to make their business interactive. The end of 2010 promised the future of real estate as more people were adopting smartphones and tablets – meaning Realtors® would quickly need to adopt a solution to meet prospective home buyer and seller demand.