Can a seller relist their property while a pending earnest money dispute is unresolved?  Sellers can, but should they?  The ideal course is to have a formal termination of the contract, which can occur by either the parties signing the cancellation instructions or as so ordered from a judge. The former is obviously preferred, and the listing agent/broker should facilitate that by reaching out to the buyer's broker directly to make headway, as well as initiating the mediation process through your local REALTOR® chapter.

If that doesn't work, inform the seller to seek advice from an attorney to understand the legal ramifications of entering into another purchase agreement without formal cancellation. It's important to note that title and escrow companies often refuse to open a second escrow on a property where the first contract has not been formally terminated because it carries legal risk. For more legal details and insights, click here and continue reading.