Question: What is the proper form to use notifying a Seller of a 3rd party cancellation in a Subject to Sale agreement?
Answer: The proper form for notification is UAR form 65, “Buyers Notice to Seller of Termination of Buyer’s 3rd Party Contract: (Subject to Sale of Buyer’s Property Addendum) Refer to Section 3A(2) of the Subject to Sale addendum where it states the following: (2) If the 3rd Party Contract is cancelled, Buyer shall provide Seller with written notice no later than four (4) days after such cancellation. In such event, Buyer or Seller may cancel the REPC by providing written notice to the other party no later than four (4) days after receipt of such notice; whereupon the Earnest Money Deposit shall be returned to Buyer without the requirement of further written authorization from Seller. Note: if neither Buyer or Seller cancel, then the REPC is still in effect, subject to the original date and condition in section 1. A clarification of dates is appropriate at this point. Since section 3A no longer applies,3B may apply and dates would be needed in this case.