The Mutual Release: What You Should Know

27 May 2015

This week we wanted to take a look at the Mutual Release.

A Mutual Release is the piece of paper you need to sign when a deal that has been agreed to will not be closing due to the buyer or the seller not satisfying a condition.

Sometimes buyers think “I don’t need to sign a release because I never gave a deposit”. We can't stress enough how wrong this is. You need to read your agreement. If your agreement does not say that the failure to provide a deposit makes the offer null and void, then you are still liable for the agreement you signed.

When you sign a Mutual Release it does two things;

  1. First, it says, who gets the deposit, If there is one. Usually, the deposit goes back to the buyer but it doesn’t have to.
  2. Secondly and more importantly, all parties, including the realtors agree that the agreement is at an end and that no one will sue anyone else for damages. That is the real benefit of a Mutual Release for everyone.