Moving on and NOT WEST

In Arizona buyers have the option to cancel a transaction during the inspection period and retaining the earnest money. Typically buyers can cite any material fact found during the inspection period. Anything at all can be cited as material fact: the neighbor’s dogs, cost of utility bills or whatever. The buyer has that option of canceling the contract and all earnest money refunded to the buyer.

I once received two contracts on the same listing. Before making the final decision on which to accept, I reviewed each and every page with the seller. I then allowed the seller time to read each contract.

The seller asked me several what if questions, one of which was contract cancellation. The seller was totally aware of the possibility of the buyer canceling the contract during the inspection period. The seller weighed the pros and cons of each contract and accepted the contract with the best terms.

On last day of the inspection period, the buyer's agent emailed me a formal rejection notification. The buyer rejected the property citing that the backyard faced west. Although the home was built with the backyard facing west, the backyard faced west when the buyer saw the home and the buyer wanted a home with a backyard facing west, since the property was rejected during the inspection period, the contract was canceled and all of the earnest money was returned to the buyer.

If any seller sells the property a few days later for less than the original offer, that is the seller’s choice/prerogative.

Listing agents should always prepare the seller for a contract cancellation if not, shame on the listing agent. It is certainly the responsibility of the listing agent to prepare the seller for the worst case scenario. The seller has no recourse to retain the earnest money. Would I be upset if I were the seller? Most certainly yes. But you know what M/M seller, your listing agent should have thoroughly informed you of the possibility of cancellation.