Dear Realtor
HELP!!!! I really do not understand what the big deal is I only signed a piece of paper and I changed my mind. My agent took me out and we viewed multiple properties. I fell in love and we drew up the contracts (a firm and unconditionally offer). I really thought I wanted it and it felt right. But…. Later that day I got cold feet and changed my mind. Not a big deal I did not drop off the bank draft or anything. I only signed the paperwork. Now everyone is really very mad and saying that I am “contractually obligated”. I thought there needed to be “consideration” for the whole thing to be binding. Which as I said I did not drop off the cheque. My agent said she could try to get a “mutual release”. What the heck is that?? Is there a problem here??? What is the big deal its only paper!!!!
Signed Indecisive or in hot water??
Dear Indecisive or in hot water,
At this point it’s hard to say you might be both. The big deal is that yes, its only paper but… what you signed on that paper is a legally binding contract. Then you submitted that contract to a seller to review. Did you understand that what you were signing and submitting were firm and binding contracts? Were you aware that the tiny printed seal on the signing page is considered consideration? By signing a contact under seal without conditions you are submitting a firm and binding offer for someone else to accept /reject/counter. At that point it is no longer within your control to change your mind. Now they may take pity on you and offer a mutual release. If they do not want to move forward with someone who is no longer wanting to complete the transaction. They might decide to cut their losses early and not waste time. Or they could hold you legally responsible to the terms of the contract you submitted to them and additionally possibly sue you for losses or damages caused by your actions. It is much more serious than you thought. Sometimes when buying or leasing a property the paperwork can seem like a simple formality. In fact, they are very serious terms and conditions that everyone involved will be strictly responsible to fulfill their obligations.
As these transactions become more common it is understandably easy to lose connection to the seriousness of these contracts and the obligations and promises held within. It is always your right to slow down and take your time. Try to carefully consider what your signing. Make sure you clearly understand all the terms and conditions that you are committing to before you submit your offer to be reviewed. Once its out of your hands and in the world, you are bound by those commitments.