- 1). Review the terms and conditions in the real estate sales contract addressing how the agreement is terminated. Standard reasons for terminating a real estate contract included in an agreement include an inability to obtain mortgage financing and a failure to obtain a satisfactory report from one of the inspections performed on the premises (structural, electrical, plumbing) or a title defect that cannot readily be corrected.
- 2). Notify the seller in writing that you are terminating the real estate contract based on one of the reasons set forth in the agreement itself. When the termination is predicated upon one of the reasons included in the contract, the purchaser is entitled to get her escrow payment back.
- 3). Prepare a written notification of your intent to abandon or end the real estate contract for a reason not specifically stated in the agreement. If terminating for a reason not included in the real estate sales contract, you do have the option of merely notifying the buyer that you are terminating the agreement and provide no specific explanation. Understand that if you end a real estate contract for a reason not included within the agreement itself you typically lose all of the escrow payment or earnest money you previously provided.
- 4). Deliver the notification to the buyer.
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