2006-07-30 01:14:39 · 3 answers · asked by Jack B 1 in Business & Finance ➔ Renting & Real Estate
If you fail to fulfil the terms of the offer other than for a reason stipulated in the contract, the seller is within their rights to retain your earnest money as liquidated damages.
They pulled their house off the market when they accepted your offer. You wasted their time by not following through with the purchase. They deserve to be compensated.
Backing out of a loan without justification is an act of bad faith and is fair reason for the seller to retain the earnest money deposit. This is explained in the agreement that you signed. Don't tender an offer unless you intend to follow though in good faith with the transaction.
I had a buyer that jerked me around badly several months ago. I lost out on 2 or 3 qualified buyers while this idiot played games. I instructed the broker to retain the earnest money as liquidated damages which she did. The "buyer" filed in small claims court and lost.
2006-07-30 01:30:25 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Your contract has a clause especially for this type of question. If you signed your contact you should know the situations that may cause the loss of your earnest money deposit. Your agent should be able to help you understand if you don't.
If you entered into a Real Estate transaction without an agent, then shame on you. The use of a Real Estate agent is of no cost to you, in most cases their fees are paid by the seller. It is always best to have an agent to represent you no matter whether you are the seller or the buyer.
Bostonian is correct, the seller took their property off the market in order for you to procure financing and could very well have missed several sales. Yes, they are entitled to keep your earnest money. However, if you fail to find financing for some reason or another you may be entitled to all or part of your earnest money deposit.
Read your contract and consult your agent. If you have no agent, I strongly suggest that you use one in your next transaction.
2006-07-30 11:57:22 · answer #2 · answered by gmommy 3 · 0⤊ 0⤋
check with the Real Estate commission in your city/state and ask them. They are supposed to keep on top of these things. Or ask another competing real estate company how they handle these type of things. I know it varies from state to state.
Good luck.
2006-07-30 08:22:57 · answer #3 · answered by love_my_4x4 3 · 0⤊ 0⤋