Updated February 08, 2024
A real estate mutual release agreement allows two parties involved in a property-related contract to release each other from claims or liability. Commonly, this is signed when a buyer no longer wishes to purchase real estate.
Main Purpose
A mutual release signed by the buyer and seller is required before a title company (agent) can release an escrow deposit. Both parties agree to where the funds are sent in the release since the original contract is terminated.
By Type (2)
 Lease Agreement Release Form – To be used when a landlord and tenant seek to release one another from a lease agreement.
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 Purchase Contract Release Form – To be used when a buyer and seller terminate a purchase contract.
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Sample
REAL ESTATE PURCHASE – MUTUAL RELEASE
1. PARTIES. This Real Estate Purchase Mutual Release (“Agreement”) is made on [DATE] and is between:
Buyer: [BUYER’S NAME] with a mailing address of [BUYER’S ADDRESS] (“Buyer”) and
Seller: [SELLER’S NAME] with a mailing address of [SELLER’S ADDRESS] (“Seller”).
Buyer and Seller are each referred to herein as a “Party” and, collectively, as the “Parties.”
2. CONTRACT. It is acknowledged a contract was signed on [CONTRACT DATE] to purchase real estate for the property described below (“Purchase Contract”).
3. PROPERTY. This Agreement is in reference to the Purchase Contract for the property located at: [PROPERTY ADDRESS].
4. DEPOSIT. It is understood that the Buyer deposited $[AMOUNT] to the Seller or their agent as part of the Purchase Contract (“Deposit”).
5. RELEASE OF FUNDS. The Parties agree to release the Deposit to: (check one)
☐ – Buyer
☐ – Seller
☐ – Other. [DESCRIBE]
6. HOLD HARMLESS. Both Parties acknowledge that the Purchase Contract is hereby null and void, with no Party having claims or liabilities towards one another. No rights or responsibilities shall exist regarding the Purchase Contract at the time of execution of this Agreement. The release contained herein shall include the Parties’ agents, successors, and assigns. No Party of this Agreement shall have any further obligation to the other Party concerning the Purchase Contract.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.
Buyer’s Signature: _______________________ Date: __________
Print Name: _______________________
Seller’s Signature: _______________________ Date: __________
Print Name: _______________________