Escrow & Title
In Louisiana, which of the following documents is used to release a buyer from a purchase agreement due to failure of a suspensive condition?
AA notice of lis pendens
BA mutual release or cancellation agreement signed by both parties and the broker✓ Correct
CA quitclaim deed from the seller
DA court order from the district court
Explanation
When a purchase agreement is cancelled due to failure of a suspensive condition (e.g., financing contingency not met), both parties should sign a mutual release and cancellation agreement. This releases both parties from their obligations and authorizes return of the earnest money deposit.
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