Do I get my 1000 dollar earnest money deposit back If I do not go through with the deal?

Question

I am buying a house and after making several offers on the home they finally accepted an offer. I was asked to pay the real estate agent 1000 dollars in earnest money on a house that i am interested in so that they can see that I am serious bout buying the house. My question is this: If after the inspection I am not happy with the house can I renegotiate the initial offer if all the things that are wrong with the house are not fixed? And if the seller refuses to fix everything with the house, and refuses to lower the price do I have to go through with the deal even if I already gave them 1000 dollars earnest money? And If I do not go through with the deal because I am unsatisfied with repairs on the house am I entitled to get the 1000 dollars earnest deposit back or do I lose this money?

Answer 1

If your Realtor is competent your contract will have contingencies that allow you to terminate the contract and recoup the earnest money. An unfavorable property inspection is usually the first thing on the list. Read your contract.

Answer 2

It depends on what your contract says. Generally, there is an inspection contingency. That does not mean that the seller has to fix what you want. Homes are often sold as-is and the inspection merely helps you find out what you are buying and if there are problems. Some contracts say the seller must fix things, but cap it at a certain amount. If the contract does not say that, the seller does not have to fix it. Also, inspection contingencies often have time limits. If you don't finish the inspection or make the objections before a certain number of days elapses, you may have waived the contingency.

If your contract says that the seller has to fix things and he does not, you probably won't have to close and probably won't lose your money. If it says that he does not have to fix things or if it says that you have a certain period of time before the contingency runs out, you will probably lose your money if you don't close.

If the house needs a lot of repairs and it is clear that you would be making a terrible mistake by buying in this condition, you may want to try to renegotiate, knowing that you might lose your earnest money. Sometimes it's better to lose $1000 than end up buying a junker. On the other hand, if you are just trying to goad the seller into making further concessions, that is bad faith on your part. If the seller did not agree in the contract to make the repairs that were found in the inspection, he should not have to do it now.

Answer 3

Contracts are "usually" contingent on inspections. Make sure it says so on your contract. It means after the inspections, you can say, there is too many thing wrong with the house and get the money back. You can also demand the seller to fix everything and if they refuse, you get your money back.

Answer 4

Your earnest money should be contingent apon the inspection . In other words your buying the house is contingent apon the inspection.

Answer 5

in case you signed a three day extension you may properly be nevertheless on the hook for the acquisition, and could could bypass with the aid of with it. It does seem as though the lender is seeking a lot of guidance, yet no longer unusual once you're a widespread time borrower. Are you beneficial they did no longer ask for this documentation in the equipment you won while the loan technique all started and you in basic terms neglected the checklist secure with the equipment? study your purchase contract for the loan contingency specifics. it could have particular you would be waiting to acquire a loan at XX% with the aid of xxx date. If this did no longer take place you will possibly have in all threat be released from the acquisition contract in case you hadn't signed that extension, which might take you in basic terms throughout the midsection of this week. you may could teach which you made extra suitable than existence like attempt to furnish documentation to the lender with the aid of offering a paper path of your compliance with the lender's dissimilar requests. extra useful yet, make your Realtor do his or her job and clarify your thoughts to you. you may properly be waiting to get the broker to sign a mutual contract of launch if the abode replace into misrepresented so a ways as sq. photos. next time you get waiting to make a purchase order furnish, get a pre-qualification from a extra efficient lender previous to creating an furnish. additionally on your purchase furnish make beneficial there's a loan contingency as properly as an inspection contingency which includes sq. photos verification. considering which you're in the coolest a million% of earnings, dropping that $1k should not be various of a difficulty to you.

Answer 6

Your contact you signed when you made the offer should explain how you can back out of the deal and not lose your deposit. Usually it is if you don't get financing or there is an unsatisfactory inspection.

Answer 7

You can only get it back if the contract is broken for a reason not stated as contingent in it.

Answer 8

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Answer 9

I was interested to know this as well