if you are fixing your house can a person still back out of the contract without losing their earnest money?

Question

we are fixing a mold problem by a professional contractor...our buyer is trying to get all their fees plus earnest money back...I thought earnest money is good faith and you lose it by pulling out of the contract.

Answer 1

if you are still in negotiations then they can back out.... Once you sign both sign off on the negotiations then you keep the ernest money........ask your attorney if the negotiation period has ended.

Answer 2

If you are making the repairs in accordance with the contract agreement, the buyer must also adhere to their side of the bargain. If they don't, they lose their earnest money. Any fees that they paid are a matter between them and whomever the fee was paid to. Mortgage applicaiton fees or credit check fees, appraisal fees, survey fees, etc would all generally be lost as the payment of them is not contingent on the deal closing.

The contract (or an amendment subsequent to the discovery of the mold problem) should have addressed the time to complete the repairs. It should also have provided for delays outside the seller's control. As long as work is progressing within that timeframe, the agreement remains valid and if the buyer defaults they are subject to loss of their earnest money or whatever penalty is provided for in the agreement.

Answer 3

If there was an inspection contingency, and it hasn't been satisfied, then they get their money back.

If the mold wasn't disclosed by you upfront, and you knew about it, they should get it back as well.

Most of the time, if there was an inspection contingency, you should have the right to remedy the issues and move forward. But, there's no requirement they accept the property if an inspection shows major issues. To many, mold is a massive issue, with all the health scares in the news, with asthma, headaches, basically poisoning from some forms of black mold. Some molds are actually very dangerous.

Answer 4

in case you walk away without genuine reason then you definately lose all your earnest funds. There are some situations the place earnest funds would be refunded yet provided that the vendor someway did no longer uphold their end of the best purchase i.e. something grow to be promised to you interior the contract that's no longer authentic/you probably did no longer acquire etc. vendor is taking too long isn't a valid reason. Coldfeet isn't a valid reason. desperate its too a tactics from city etc. all no longer valid. The deposits for advancements could be refundable considering that they are only that, deposits. Deposit implies refundablity, in spite of if, considering that each genuine belongings deal is unique, you will could locate the final area on your contract the place it discusses the deposits. you could nonetheless lose them. Your credit should not be broken consistent with say yet in destiny bargains, sellers would be reluctant to do business company in the event that they someway locate out you backed out of a deal at the instant. i do no longer think of you could walk. in case you do no longer basically like the representative, confer with a supervisor or inn a criticism. enable them to be responsive to which you're aggravated and questioning approximately strolling faraway from the deal yet be confident to tell them precisely why you're mad. something like this befell to us final fall as quickly as we've been attempting to purchase a foreclosed belongings. the vendor had gotten a greater useful furnish after agreeing to sell to us. They stopped returning our calls and stuff, relatively attempting to harass us into going away. We does no longer so as that they at last had to refund our earnest funds. (Later that deal fell with the aid of and we ended up getting the abode besides. Six months later, for $40,000 much less.) besides, the appropriate element to do would be to look for advice out of your agent with all of those subject concerns. in case you haven't any longer have been given an agent representing you, see in case you will get one to return on now, or to look for advice from, to act at the same time with your appropriate hobbies (no longer the builder's) in innovations. Calling a criminal expert feels like good advice yet would be so high priced and in case you haven't any longer have been given any genuine explanation for strolling away, you're already going to be dropping funds. good success to you!

Answer 5

If they signed the contract contingent on inspection, then if you fix all the things listed in the inspection report they must live up to the contract.

Answer 6

You are correct. If someone offers to buy, then changes his mind, he loses his deposit. If he has a legitimate reason, and it is spelled out in your contract, then you will have to return the deposit.