A real estate contract termination letter is written by the client or investor in order to pull out of the deal. Without any reason, pulling out may grab stringent consequences. Therefore, to make an exit legal and professional, the client or investor should always issue a real estate contract termination letter by buyer or investor.
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What is a real estate contract termination letter?
It is an official document written by the client or investor in order to cancel their existing contract with a real estate agent or company. When terminating such contracts, this letter prevents you from being a victim of future litigations.
Moreover, it is usually advisable that before a client terminates a real estate contract, they first seek legal advice or interpretation of the contract clause that allows premature termination. Each agency has a different set of policies regarding contract termination. Some may accept a mutual cancellation of a contract. While some allows the client to terminate one contract with a specific agent in case they want to sign another with the same company but the agent will be different. Hence, it’s important that you follow the due legal procedure on the basis of the state or country you operate.
Key elements of a real estate contract termination letter:
- The information regarding the parties involved in the contract. This may include the name, addresses, and contact information.
- The starting and ending dates of the agreement. The end date should indicate the contract’s expiry date.
- The reason that why you are terminating the real estate contract. Keep in mind that the reason you are stating in the letter should be genuine and in conformity with a specific clause.
- Specify whether an eviction notice is applicable or not.
- The steps that can be taken to stop the termination from happening.
How do you write a real estate contract termination letter?
During writing a real estate contract termination letter, you may face varied challenges. This is especially true for newbies. However, here are the steps you can follow when writing your letter;
The sender and the recipient address
You have to write the sender’s address, date followed by the recipient’s address in case to send your letter as a printed copy. But, if you are sending the letter electronically by mail then ignore the addresses and the date. Instead of this, you just have to add a subject.
You should use a formal salutation as the Real Estate Contract Termination Letter is formal letters.
You should emphasize the reader what the letter is all about in just a few sentences. You should state that you are writing the letter to cancel the existing real estate contract with them. You should be concise and straight to the point.
In the body paragraph, you have to explain the reason of terminating the contract in detail. To support your termination reasons, provide facts, figures, and a reference clause.
In the conclusion paragraph, provide the summary of the important points covered in the body. This assists you in explaining your reasons to ensure that the reader understands the right of your matter.
Additionally, if there are any other terms and conditions that you think the reader must know, make sure mention them in this paragraph. For a call of action, provide your contact information. In the end, affix your signature and write your name.
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In conclusion, a real estate contract termination letter is written by the clients or investors to legally and professionally cancel their existing real estate contracts. You should use polite and professional language. Also, before writing the letter, recheck the termination clause properly.