Real Estate Law
Have Real Estate Law Questions? Ask a Real Estate Lawyer.
Hello! I am a licensed attorney, admitted to practice in state and federal court. I have a nearly 100% satisfaction rating so all that means is that you can count on me to help today. Do you mind if I take a moment to review your question?
Please keep in mind that our conversation does not include an attorney-client relationship and this is for general information purposes only. Additionally, most people believe a phone call is the easiest and most efficient way to handle problems. Accordingly, you will receive an automatic phone call request. If you would like a phone call, please click “Accept” when prompted.
I’m sorry to hear about your situation. Generally, parties are allowed to cancel a home sale contract before closing without penalty unless agreed to otherwise. If there are conditions that must be met before the contract can be performed, and one party believes that the condition was not met and cancels the contract, then their belief must generally be done in good faith. Under the Uniform Commercial Code Section 1-304, every contract comes with implied promises from both parties that they are going to be acting fairly toward one another. The failure of one party to act fairly toward the other can result in a breach of contract. In your case, if there is nothing expressly that says that you can keep the earnest money, then the answer is no, generally you won’t be able to keep the earnest money. My recommendation would be to work with the buyers to find out what went wrong with the inspection and what it is that you can do to make it better. Otherwise, unless it says that you can keep the $, I would give the money back or else they may sue you for it, which would be unnecessary if you are trying to sell your home.
Also, although I provided an initial answer, it’s important that you are 100% satisfied. If you feel I have done so, please rate me 5 stars and let me know if you have any follow up questions. As a side note, you can also click here in the future to request me individually.