SO ARE YOU SAYING THAT THEY CAN STILL TERMINATE THE CONTRACT BASED UPON FINANCING, SURVEY OR TITLE CONTINGENCIES but not just unilaterally
terminate during the option period if they have failed to deliver option fee to the seller within 3 days of effective date/
Makes total sense. Thank you.
Thank you Pam for watching! Have a great weekend.
How would the title company handle this situation in which the option fee was never paid if the buyer sends notice of termination to the title company during the option period and expects the earnest money to be returned to him? Thanks.
Hi Sharon, if Buyer doesn't pay the option fee as specified in Para. 23, Buyer does not have a contractual right to terminate under the option. Therefore, we will not release to Buyer in that situation UNLESS Seller signs a release agreeing that the earnest money goes to the Buyer. In order to release earnest money to Buyer without Seller's signature on a release, we would have to have evidence that the option fee was paid on time and that the termination was properly sent during the option period. This is described further in one of Dawn's previous videos linked here: https://allegiancetitle.wistia.com/medias/bjn5ijfsar
OK, say the buyer has a 10 day option, doesn't pay the option until the 4th day. The seller receipts the option money on the 4th day - does the buyer still have an option to terminate on the last day of option now?