Real Estate Law
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Hello, my name is ***** ***** I am a licensed California attorney. Thank you for using this service, but please be advised that I can only provide you with general advice in this forum. This answer depends on what the purchase agreement says. First, was the liquidated damages clause signed? Second, has the buyer removed contingencies for financing? I need to quickly look at the earnest money rules for disabled veterans as I'm not familiar with a rule to the effect you are stating.
Hello again, I checked some resources and could not find anything to the effect that a disabled veteran is entitled to a full refund of their earnest money deposit for any reason. I am also surprised that your client gave money directly to the seller. I am not sure what the additional addenda say in which your client agreed to pay the seller additional funds directly in order to extend the escrow, but absent some contrary language, if your client had the right to cancel the agreement then he should have get all of his earnest money refunded back to him.
The ADA can be found online, and HUD provides relevant regulations as well. However, I can't find anything that supports a return of the full earnest money deposit for a disabled veteran regardless of the reason for the cancellation of purchase agreement.
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