I received 15000 in earnest money which stated if they did not close on specific date i could keep 5000 $ and return the 10000$ but it did not say by when.After having my home off the market for one month i do not want to return any moneys.What is some good advice?
2007-05-18 06:41:45 · 9 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
Stick to the contract. The only way a lien can be placed on your house is if a judgment is rendered against you and one is then filed.
2007-05-18 06:46:35 · answer #1 · answered by JAY O 5 · 2⤊ 0⤋
Ernest money is supposed to be liquidated damages for non-performance of the contract. If the potential purchaser did not make the agreed settlement time, he runs the risk of losing the ernest money.
This person has no right to place a lien on the house to get return of the ernest money. He breached the contract, and, as regards to real estate contracts, "time is always of the essence."
You did not indicate that he wanted to get an extension of time in order to get financing.
2007-05-18 07:07:58 · answer #2 · answered by Mark 7 · 0⤊ 0⤋
You definitely need to talk to a real estate contracts attorney but if you signed a contract with no contingency clauses, you may be in a bad situation. You may have some limited recourse against your realtor if you were a first-time buyer because your realtor should never have let you sign a contract with no contingency clause, but if it's not your first purchase, that might not be an option either. The people I bought my house from were in a similar jam--- unexpected problems with the financing and no contingency clause and they did not get their money back so you really, really need a lawyer on this.
2016-05-22 08:21:34 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Depends on the contract. They can NOT place a lien on your property unless they get a court order. Only trades people not being paid for work done have an automatic lien on your house (but even they have to file it).
2007-05-18 06:49:52 · answer #4 · answered by Anonymous · 0⤊ 0⤋
My advice is to give them the $10k. According to what you stated, the contract says you owe it to them, and all you're going to do if you make them sue you for it is increase the amount you ultimately have to pay by the cost of two lawyers.
And yes, they can put a lien on the house until it is decided by a court, and it'll be hard to sell the house in the meantime. That might take some time.
2007-05-18 06:48:46 · answer #5 · answered by open4one 7 · 0⤊ 1⤋
When a time is not specified the law implies a "reasonable" time under the circumstance. Generally that means when there's no reason to delay. Comply with the contract or you'll find yourself being sued and possibly paying their attorney fees to boot.
2007-05-18 06:47:49 · answer #6 · answered by Anonymous · 1⤊ 0⤋
You need to return the money or they can put a lien on your house. Why do you want to keep their money?
2007-05-18 06:45:38 · answer #7 · answered by professorc 7 · 1⤊ 1⤋
save some lawyer fee and give back the money it will cost you a lot more to go to court!!
2007-05-18 06:51:01 · answer #8 · answered by Anonymous · 0⤊ 1⤋
make sure your hazard (ie) fire insurance is paid up
2007-05-18 06:50:22 · answer #9 · answered by Anonymous · 0⤊ 0⤋