We paid ernest money on a home. We made a bid on the house and the sellers exceppted. After several months we were unable to sell our house. We signed sevral exstensions on the bid. We deciced last time not to exstend the bid any more. Are we entitled to a refund of the ernest money.
2007-11-05 05:01:57 · 3 answers · asked by Bigg Daddy 1 in Business & Finance ➔ Renting & Real Estate
I do not believe you can get your money refunded, but you should ask your real estate agent this question.
Ernest money is a guarantee of your seriousness in contracting to buy the home. Since the seller takes the house off the market, and takes the risk that the sale will fail, the buyer takes the risk of losing the ernest money if the sale falls through. You take the risk of losing the money, to ensure that the seller doesn't sell the house to anyone else.
When we put ernest money down on property we bought, we were informed that, if we backed out of the purchase, the money was lost. You may have been told this as well.
So go back to the realtor and ask.
2007-11-05 05:13:28 · answer #1 · answered by Nedra E 7 · 0⤊ 0⤋
Nope. Earnest money is paid as liquidated damages in case you are unable to fulfill you part of the contract. Since you held the seller's house off the market for a period of time, they are entitled to compensation, and you agreed what that would be with your earnest money.
** Note: This is a general discussion of the subject matter of your question and not legal advice. Local laws or your particular situation may change the general rules. For a specific answer to your question you should consult legal counsel with whom you can discuss all the facts of your case. **
2007-11-05 13:10:27 · answer #2 · answered by scottclear 6 · 0⤊ 0⤋
You are only entitled to an earnest money refund if your offer to purchase contained a contingency that your former home must sell in order for your offer to be a full offer without contingency.
Absent such a contingency, you may not only lose your earnest money, but also be sued for breach of contract and specific performance. You need to examine your written offer to purchase very closely and perhaps have a real estate attorney review same.
2007-11-05 13:38:01 · answer #3 · answered by acermill 7 · 0⤊ 0⤋