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Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 33802
Experience:  15 years real estate, Realtor. Landlord 26 years
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I put $20,000 down on a new construction that was almost

Customer Question

i put $20,000 down on a new construction that was almost complete. contract says non refundable. mortgage company led me to believe they could get me approved for a loan an has not been able to. can I get my deposit back?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Barrister replied 1 year ago.

Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.

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Did you have any contingencies in the purchase contact, such as a financing contingency that states that you have to be able to get financed at a certain rate for a certain amount for a certain period of time or the sale falls through?

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How about an appraisal and inspection contingency that gives you the right to terminate if it doesn't appraise or fails an inspection?

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thanks

Barrister

Customer: replied 1 year ago.
it did have a 30 day contingency, but bank talked with seller and said they would have approval just after the 30 days and still have not come up with the aproval
Customer: replied 1 year ago.
with this contingency I would have needed 2 rejection letters from banks prior to the 30 days now past 30 and still waiting for bank
Customer: replied 1 year ago.
my bank had me pay off many creditors to fix my credit, did that and don't think he will come through with loan
Expert:  Barrister replied 1 year ago.

Ok, in a situation like this, unless there is a clause that states "Time Is Of The Essence", then both parties have a "duty of good faith and fair dealing" to continue to work together to see if they can get the deal done and extend the time for obtaining financing or for getting a final rejection. You can't be penalized for trying to get financed and not getting an answer from the bank yes or no if the bank is dragging their heels.

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So if the seller tried to keep your money once you get a final notice from the bank if you get rejected, then you can sue them under a breach of contract claim for their bad faith actions in not extending the time for you to get some final decision from the bank one way or the other. It isn't unusual for it to take past the stated deadline for a financing approval. But as long as the buyer is doing their best to get an answer, the seller has to wait or they can terminate and refund the deposit if they wanted to move on.

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As an aside, in addition to being an attorney, I have also been a licensed Realtor for over 11 years...

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thanks

Barrister

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