How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask lwpat Your Own Question

lwpat
lwpat, Attorney
Category: Real Estate Law
Satisfied Customers: 25384
Experience:  Practicing attorney with expertise in easements
15417118
Type Your Real Estate Law Question Here...
lwpat is online now
A new question is answered every 9 seconds

We are purchasing a home and the appraisal came back $2,400

Resolved Question:

We are purchasing a home and the appraisal came back $2,400 less than what our original accepted offer was.

Is it customary to ask the sellers to lower the price based on the appraisal? We have an appraisal contingency but our lender took so long to get the appraisal going, the appraisal came in past the contingency period, although we have not signed off on the contingency yet. Our loan is less than the purchase price since we put 20% down. It's just an investment property for us, so we are not attached to the place.

If the seller says no to the price drop and we decide to back out, what would happen to our earnest money and does the title company decide if we get our earnest money deposit back or not?

Thank you!
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  lwpat replied 1 year ago.
Thanks for using JA. I will do my best to answer your questions. DON’T FORGET the your deposit is not used to compensate me until you rate my service.

There is certainly no harm in asking the seller to reduce to the appraisal. However, since the contingency period has expired, the seller can hold you to the contract price. If you back out, generally the seller gets to keep your earnest money and they are the ones that decide whether to keep it or not and you can expect them to keep it. Your contract will set out specifically how the earnest money will be handled if you default so you need to refer to the fine print in the contract. Most contracts give the seller the option of keeping the earnest money or suing you to force you to buy (specific performance). The actual terms of the contract are what will govern your rights. The title company is not the one that decides.
Customer: replied 1 year ago.

Thanks. We have not released any of our contingencies yet. Does that make any difference whether we get our earnest money deposit back?


 


Thanks.

Expert:  lwpat replied 1 year ago.
If the contingency period has expired, then it does not matter whether you have signed off or not since the contract required that you exercise your contingency by that date or you are considered to have waived your rights. This is based on the normal contract of sale but you can review your specific contract to see if that is the way it is stated.
lwpat, Attorney
Category: Real Estate Law
Satisfied Customers: 25384
Experience: Practicing attorney with expertise in easements
lwpat and 3 other Real Estate Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Tina

    Lawyer

    Satisfied Customers:

    4813
    16 years of legal experience including real estate law.
< Last | Next >
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    4813
    16 years of legal experience including real estate law.
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Lawyer

    Satisfied Customers:

    6227
    20 years extensive experience in real estate law, foreclosure, finance, and landlord tenant law.
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Lawyer

    Satisfied Customers:

    4966
    13 years real estate, Realtor. Landlord 24+ years
  • http://ww2.justanswer.com/uploads/LA/LawTalk/2012-6-6_17379_LawTalk.64x64.JPG LawTalk's Avatar

    LawTalk

    Attorney

    Satisfied Customers:

    4446
    I've more than 27 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
  • http://ww2.justanswer.com/uploads/RA/rayanswers/2012-6-7_23346_Untitled1.64x64.jpg Ray's Avatar

    Ray

    Lawyer

    Satisfied Customers:

    4030
    Texas Attorney for 29 years dealing in real estate
  • http://ww2.justanswer.com/uploads/PH/philip.simmons/2012-6-7_161915_BIGPhilipSimmons.64x64.jpg P. Simmons's Avatar

    P. Simmons

    Lawyer

    Satisfied Customers:

    2377
    12+ yrs. of experience including real estate law.
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    2355
    B.A.; M.B.A.; J.D.
 
 
 

Related Real Estate Law Questions

Chat Now With A Real Estate Lawyer
lwpat
lwpat
4254 Satisfied Customers
Practicing attorney with expertise in easements