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May 25, 2022
What is a Mutual Release?
Just a spin off a previous video about the Difference between Deposits and Down Payments when Buying a Home. I discuss in this Video what happens to the Deposit that was given with the Accepted Offer and the Buyer can't or refuses to Buy/Close the House.
The misconception out there is that the Seller gets to keep the Deposit. That is False. The Buyer and the Seller must agree to how the deposit will be dispensed and releasing the Buyer from any legalities of the deal. What is a Mutual Release? The Mutual Release is the form that must be agreed upon for this to happen. If, after 2 years, an agreement is not made between the Buyer and the Seller, the Deposit could go to Charity.
Not only does an accepted Mutual Release resolve the deposit issue but it also removes the buyer from any law suits from the Seller in the future. It's a very important document when the home does not close.
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