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 Ray Your Own Question
Ray, Lawyer
Category: Legal
Satisfied Customers: 42303
Experience:  30 years in civil, probate, real estate, elder law
Type Your Legal Question Here...
Ray is online now
A new question is answered every 9 seconds

I, the seller, have received earnest money on a real estate

Customer Question

I, the seller, have received earnest money on a real estate deal that has gone bad. I have incurred 2-3000 dollars in agreed upon expenses to fix items in te inspection report. Can I deduct those expenses from the earnest money?
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: Colorado.
JA: Has anything been filed or reported?
Customer: I'm not sure what you mean?
JA: Anything else you want the lawyer to know before I connect you?
Customer: I have not released the earnest money at this point, and I have had the requested repairs fixed.
Submitted: 8 months ago.
Category: Legal
Expert:  Ray replied 8 months ago.

Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question and respond.

Expert:  Ray replied 8 months ago.

Did the buyer breach or what , some more information here please, thanks.

Customer: replied 8 months ago.
The buyer was pre approved on a mortgage, at the last minute, just before we set a closing date, the bank backed out of the mortgage agreement. I do not know the banks reason for their decision.
Expert:  Ray replied 8 months ago.

So here if the sale was contingent on financing and they made a good faith effort and were denied you will have to likely refund all the earnest money.You can offer say half and see if they agree but unless the contract said this was non refundable they likely get it back.I understand you had expenses but here if they made good faith application they complied with terms of sales contact and you have to refund their earnest money.I would offer to settle for half and see if they will take it to avoid dispute.This gives you something for your trouble.

I appreciate the chance to help you today.Thanks again, sorry it didn't work out.

If you can positive rate 5 stars it is much appreciated.