How To Cancel Contract...And Get Earnest Deposit Back

[Matthew G.]

I have house under contract that I would like to cancel. We found out during the title search that the owner owes more in personal taxes than the purchase price of the house!

The title company is telling me that a need a Cancellation Agreement, signed by both parties. I don't see why I should need to get this signed by the seller, as they didn't tell me about the taxes, and provide clean title.

I have a clause that reads:

"Unless otherwise stated herein, or as otherwise provided on an inspection addendum attached hereto, Buyer shall have the option of inspecting or, obtaining at Buyer's expense, inspections to determine the condition of the Property.Seller agrees that in the event Buyer determines in its sole discretion that the Property is not suitable for its purposes, Buyer may withdraw this offer to purchase at any time, and the earnest deposit shall be returned to buyer, upon the sole demand of buyer to the title company."

That should be all I need, right? Or do I need to get a Cancellation Agreement? Thanks!