Does the seller’s signature on Form 350-T mean the seller is agreeing with the buyer’s reason for termination?
QUESTION: I just received a Notice of Unilateral Termination – From Buyer to Seller (Form 350-T) from the buyers’ agent. In the “Reasons for Termination,” the buyers checked two boxes, one for the buyers’ right to terminate during the Due Diligence Period, and another one alleging my seller has breached the contract. My seller is willing to release the Earnest Money Deposit to the buyers, but she does not want to admit she has breached the contract. What should I tell her?
ANSWER: If your seller signs Form 350-T at the bottom and agrees to release the Earnest Money Deposit to the buyers, the seller is not admitting that they agree with the buyers’ reasons for termination.
In the Earnest Money Deposit release section at the bottom of Form 350-T, the last sentence, immediately above the signature block for a seller, says: “Seller reserves all rights to dispute or challenge Buyer’s alleged grounds for termination regardless of Seller’s decision to release the Earnest Money Deposit or not.” This sentence means that the seller is only indicating whether they are agreeing to release the Earnest Money Deposit or not. It also means that the seller has every right to dispute the buyer’s reasons for terminating if they wish at a later time. The seller is not agreeing with the buyers’ reasons for termination by signing the bottom section that addresses Earnest Money Deposits.
Another related question that comes up is whether a buyer’s signature on Form 350-T is effective to terminate the contract even if the seller chooses not to sign the bottom section at all. The answer is that the buyer’s termination is effective, even if the seller does not sign at all. Form 350-T also says that it “should be noted that regardless of Seller’s decision below to release the Earnest Money Deposit, the Contract is terminated.”
Release Date: 11/13/2025
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