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RealEstateAnswer, Lawyer
Category: Real Estate Law
Satisfied Customers: 28035
Experience:  10+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
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Under what circumstances can a buyer recover a $36,000

Customer Question

Under what circumstances can a buyer recover a $36,000 earnest money deposit that the seller maintains is NON REFUNDABLE even though the home is currently only at the foundation stage.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  RealEstateAnswer replied 1 year ago.

Good afternoon. Can you share with me the basis for which the buyer want to cancel the contract and recover? Has the builder/seller performed under the contract, to date?

Customer: replied 1 year ago.
The builder has done nothing to void the contract as of yet. The issue is that one of the buyers will be unemployed within the next 30-60 days making the payments impossible to afford.
Expert:  RealEstateAnswer replied 1 year ago.

Thank you. With that being said, you want to review the contract and look to see if there is a financing contingency, included. Typically, when buying a home, there is a clause that would allow a buyer to back out of the contract and get their deposit back IF they are unable to obtain financing, in good faith. If this was conditioned upon it and the buyer can not get a mortgage because they are unemployed, they can back out. Now, there are time limits in the contract, so those need to be reviewed and complied with as well but if the buyer can not qualify for a loan, most contract have a financing clause, which should afford protection.

Expert:  RealEstateAnswer replied 1 year ago.

Please let me know if you have any follow up questions or need any clarification on something which I stated above. Also, remember to rate my service at the top of this page, before exiting the site, so I can receive credit for my help. I hope you found it to be Excellent! Only rate my answer when you are 100% satisfied. If you feel the need to click either of the two lower ratings to the left, please stop and reply to me. I want to make sure your experience with the site was as pleasurable as possible and that you are satisfied with the help I provided.

Expert:  RealEstateAnswer replied 1 year ago.

I just wanted to follow up and see if you had any other questions or needed me to clarify something. I am here to help, so please let me know. Thanks!