Can my seller claim all or part of the earnest deposit?

Question

I received buyer's approval and an earnest deposit of 6,000. Two days before closing the buyer's agent called to say that the deal will not close! I received the denial letter which stated unacceptabe credit as the reason why the buyer would not get financing. Is my seller entitled to any portion of the deposit?? Also another problem is that the buyer mistakenly signed august instead of july. Contract was executed july 19th. Closing was supposed to be august 15th.

Property in Florida

Answer 1

your local law controls ... and we don't know where this is.

the minor error of the date on the form isn't critical, but whether the deal is void because financing failed depends on local law and the contingencies in the offer.

certainly, the way I write offer contingencies, the deal would be void and you'd have to promptly return all of my earnest deposit.

Answer 2

Contract to purchase almost always contain clauses that the earnest money will be returned if the buyer cannot obtain financing

Answer 3

If the borrower cannot qualify for financing, in most cases, they are entitled to a return of their depost. Unless your contract specifically states elsewise, the funds must be refunded.