Ending a Transaction? Know OREF 057.

OREF 057: More Than a Transaction Termination Form

Not every real estate transaction reaches the closing table. When a transaction comes to an end, it’s important to properly document both the termination of the agreement and the handling of the earnest money deposit. OREF 057 – Termination Agreement and Deposit Disbursement Instructions was designed to help parties do exactly that.

One of the most important concepts to understand about OREF 057 is that it contains two separate agreements:

• The Termination Agreement, which documents the parties’ agreement to end the transaction and releases them from most of their obligations under the Sale Agreement.
• The Deposit Disbursement Instructions, which direct the escrow company or other deposit holder on how the earnest money deposit should be distributed.

While these agreements are contained in a single form, they operate independently. That means the parties can agree to terminate the transaction even if they have not yet reached agreement on how the earnest money deposit will be disbursed. Understanding that distinction is essential to using the form correctly and helping clients navigate the process with confidence.

Build Confidence When Transactions Don’t Go as Planned

While every broker hopes a transaction closes successfully, every broker should also be prepared for the transactions that don’t. Understanding when and how to use OREF 057 will help you confidently guide your clients through the termination process while ensuring the appropriate agreements are properly documented.

Watch the Featured Form video to learn how OREF 057 works and when to use it in your next transaction.

Do you have an idea or suggestion for a new form or edits to existing forms? We want to hear from you! Submit your ideas to our Forms Committee here.

Always check with your principal broker or legal counsel to ensure that you are following any policy requirements of your brokerage. All comments and responses from OREF or its staff, managers, and volunteers are non-legal opinions made for general purposes. Each Forms subscriber must rely solely upon their Principal broker or personal legal counsel for specific advice and instruction. You and your client should independently confirm that the Form(s) you use are legally suitable for the purposes intended and that they are current with respect to all laws and regulations.