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Is earnest money refundable if you back out?

It depends on why you are backing out of the deal. There are certain contingencies covered in most real estate contracts protecting the buyer. If you back out of the contract for an approved contingency, you will get your earnest money back.

Can I get my earnest money back if I change my mind?

You would get your earnest money back if the agreement is terminated based on any clause included in the contract. Could be inspection, could be appraisal, could be you dont secure financing. Whatever contingencies are written into the contract allow you to recoup your earnest money- its not just on the sellers end.

What is a mutual release in real estate?

A mutual release is a document designed to be signed by both the buyers and sellers to cancel an agreement of purchase and sale. When executed, this document cancels the agreement and releases all parties from any future liabilities or claims.

What does release of earnest money mean?

Earnest money is returned to the buyer at closing. The buyer can choose whether to apply the funds toward a down payment, closing costs or other settlement costs. But in some cases, if certain provisions of the purchase contract are broken, the buyer will have to forfeit the earnest money and the seller will keep it.

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