We have a ratified contract and already sent in the deposit money. However, I lost my job a week ago. Is it possible for me to walk away from the contract? Am I still able to get my deposit back if I do?
There is no financial contingency on the contract. And this property is not bought straight from cash; we're mortgaging.
2007-07-12 15:46:35 · 4 answers · asked by top1 2 in Business & Finance ➔ Renting & Real Estate
Explain your situation to your agent. Most reasonable people would not want to kick you while you are down, but of course, the reason they take a deposit is to protect themselves from losses.
Here is a little pointer. If they do not want to give you your deposit back, you can threaten to sue them and depending on what the jurisdiction is, I don't think they can go forward with a sale to any one else while a lawsuit is pending on the property - even if they could, most people want to avoid law suits at all cost. I know it sounds dirty, but hey - that's why we have lawyers, right?
Last year, I had a valid need to get out of a contract for a new home with a builder. I got beyond the sales people to a manager and explained my situation. He gave me all kinds of reasons why I should go through and why he couldn't give me my deposit back. All I said is "can you help me or do you want to go to court with me?" I told him I wasn't kidding and the next person he would hear from is my lawyer. Some people use that line as a scare tactic, but I really do have a lawyer and that sort of helps you say that with a little more confidence. If you speak to a real state lawyer in your area first, then (technically) you will have a lawyer too. Anyhow, I got my deposit returned to me within a few weeks.
2007-07-13 00:40:44 · answer #1 · answered by Anthony 3 · 0⤊ 0⤋
I am not sure where you live but in most states the contract is terminated if you can not get financing and you should get your deposit back. If you are using a realtor, tell him/her right away that you lost your job. You will probably need a letter from the lender stating that you are not eligible for a loan because you no longer have a job. If you present that to the seller or the seller's agent and request the return of your deposit, you should not have a problem. You always have small claims court if it should go that far.
2007-07-12 16:42:22 · answer #2 · answered by caddemd 2 · 0⤊ 0⤋
Why would you ever put in an offer on a property that you were financing without including a financing contingency? Whether you can walk away and what it will cost you depends upon the contract. Don't expect to see your deposit at the very least.
2007-07-12 15:52:06 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
What do you mean by a ratified contract? Did you close yet? I assume when your lender calls to verify your employment, they will discover your job loss and recind the funding.
2007-07-12 15:53:02 · answer #4 · answered by Anonymous · 0⤊ 0⤋