I'm selling real estate in Florida, and I'm currently in contract with a buyer. A large deposit is in escrow, but it is contingent on buyer's ability to get approval for a loan. He is approved for an 80% loan, and would have to pay 20% down at closing. This sounds like a usual type of loan given this housing market, even though the buyer wants a better loan. If the buyer does not go through with the contract, and claims he was not able to get the loan he wanted, am I eligible to collect the deposit that is in escrow?
2007-08-06 08:36:20 · 7 answers · asked by Maria 1 in Business & Finance ➔ Renting & Real Estate
You'll have to read the contract. My guess would be no.
Usually if I buy property I put clauses that read 'upon receiving acceptable financing' and "upon acceptable inspection"; these are vague enough that I can back out if I get "cold feet" since it's up to me (the buyer) to decide what "acceptable" financing and inspection is.
2007-08-06 09:13:31 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Check your contract. Normally there is a mortgage contingency clause. If the buyer does not qualify for a loan, the deal with fall through and they'll get their earnest money back. They would need a copy of the denial letter from the lender, of course.
If a buyer just gets cold feet and backs out, the contract with govern what happens. Normally the seller would retain the earnest money (typically $500 - $1,000) and any other funds on deposit would be returned to the buyer.
2007-08-06 08:57:34 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You keep his earnest money, but not his deposit. He will get his 20% back regardless of why he isn't buying. A pre-approval is NOT an approval, I would not count him approved until the bank signs the bottom line. He is not required to accept a very high interest loan. Almost anyone can geta 20% loan, but that does not make it reasonable.
2007-08-06 11:32:26 · answer #3 · answered by Landlord 7 · 1⤊ 0⤋
You will need to read the financing contingency clause in your offer to purchase. If the clause contains specific requirements for the loan to be acceptable and he cannot get a loan matching or exceeding said requirements, then you must return his earnest deposit.
The language in the contract/offer is what will rule here.
2007-08-06 09:54:22 · answer #4 · answered by acermill 7 · 0⤊ 0⤋
counting on your settlement with the customer and if all the contingencies have been met, you're able to stress the sell. If the customer in simple terms replaced his techniques, legally in my state besides, the customer is legally sure via the settlement and if he tries to get out of the settlement, you may sue. Its maximum suitable to inquire alongside with your Realtor as to what the genuine property rules of your state are. solid success!
2016-10-01 12:51:35 · answer #5 · answered by ? 4 · 0⤊ 0⤋
Check the contract. Also, you need a FL agent to answer that as each state is different
2007-08-06 08:48:16 · answer #6 · answered by Anonymous · 0⤊ 0⤋
No. If he doesn't qualify as agreed to in the puchase agreement, his deposit has to be refunded.
2007-08-06 08:57:48 · answer #7 · answered by Anonymous · 0⤊ 0⤋