CABR has a library of contract clauses and more than 40 contracts and forms available for use by CABR members.
Notice of Termination of the Contract to Purchase: To be used when a party to the purchase contract is exercising their right to terminate the contract based upon a contingency as provided in the contract. It needs only the signature of the terminating party. This is a notification….not a request.
Release of Earnest Money: Provided on the same sheet as the above form for the purpose of disbursing earnest money. Although on the same piece of paper, it is a separate form and whether the parties agree to the disbursement or not, does not affect a party’s right to terminate. If not signed, with all parties agreeing to the disbursement, the earnest money cannot be given to either party.
Release from Contract to Purchase: The purpose of this form is to release all parties, brokers, agents, etc. from any claims related to the purchase contract. In some cases, it is used as a request from one party to the other to be released from the contract for a reason that was not a contingency in the contract (i.e.: job transfer, health issue). In other cases, it is used to facilitate the mutual agreement of the parties to release one another from all contractual obligations.
The form should also be used along with the Notice of Termination in order to obtain an acknowledgement / confirmation that the contract is over and that the parties agree to hold all involved harmless. It is another opportunity to address the earnest money disbursal. It must be signed by all parties in order for the disbursement of earnest money to occur.
Release from Contract to Purchase (Without Earnest Money Disbursal): The purpose of this form is the same as above, with the exception that it does not provide for the disbursal of earnest money. It is to be used when the parties agree to mutually release one another from the contract, but want to retain the right to determine disbursal of earnest money at a later time.