Handling a Cancelled Contract in Dotloop (If a Deal Falls Through)

Handling a Cancelled Contract in Dotloop (If a Deal Falls Through)

When a contract is cancelled, agents must properly organize documents and submit them for compliance.

The steps differ slightly depending on whether you are the listing agent or buyer agent.


For Listing Agents

1. Rename the Initial Docs Folder

  • Click the three dots next to the Initial Docs folder

  • Select Rename

  • Change the name to Cancelled Contract


2. Add the Release & Cancellation

  • Upload or move the fully executed Release & Cancellation (R&C) form

  • Place it inside the Cancelled Contract folder


3. Add Earnest Money Documentation (If Applicable)

If an earnest money deposit (EMD) was made:

  • Upload or move the EMD receipt into the Cancelled Contract folder

Note:
Some states require documentation when escrow funds are being returned. Always follow your state and brokerage requirements.

If no EMD was made, you can skip this step.


4. Submit for Review

  • Click Submit for Review (top right)

  • Select the Cancelled Contract folder

  • Click Submit


5. Prepare for the Next Contract

If a new buyer goes under contract on the same property:

  • Click Add Folder

  • Create a new Initial Docs folder

If you are also representing the buyer, include:

  • Buyer Disclosure

  • Wire Fraud Prevention Notice

  • Energy Efficiency Brochure (if applicable)

  • Affiliated Business Arrangement (ABA) Disclosure


For Buyer Agents

  • Upload the signed Release & Cancellation (R&C) into the loop

  • Click Submit for Review

Compliance will:

  • Mark the loop as Cancelled/Terminated

  • Update the status accordingly


Earnest Money (If Applicable)

If an EMD was submitted:

  • Upload the EMD receipt along with the cancellation

This may be required depending on your state and brokerage policies.


If No Earnest Money Was Made

If no deposit was submitted:

  • A Release & Cancellation may not always be required

  • However, it is strongly recommended to:

    • Complete the form

    • Obtain signatures

    • Provide it to the title company

This helps ensure all parties are properly released and reduces risk.


Best Practices

  • Always document the cancellation clearly

  • Keep all related documents in the loop

  • Submit promptly for compliance review

  • When in doubt, include more documentation rather than less

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