I need to use some of my earnest money for moving. Can I do this. If something falls through on my part, I would just have to pay it back right.
2007-11-16 13:38:24 · 6 answers · asked by bob 2 in Business & Finance ➔ Renting & Real Estate
Earnest money doesn't work that way. Once you provide that deposit, the money goes into an escrow account, either at the real estate agency or another place which holds it in trust until closing.
Such holders of earnest money are not allowed to disburse any of the funds until agreement is reached on what is to be done with the money. If the deal closes, the money is either applied to the purchase or refunded to the buyer, if the buyer obtains a 100% LTV mortgage.
If the deal fails to close, then agreement on where the money goes must by signed by both parties before any of it is disbursed.
2007-11-16 14:33:04 · answer #1 · answered by acermill 7 · 1⤊ 0⤋
Your question is unclear. Are you the seller or buyer? In any event, the earnest money should being going straight into an escrow account as soon as a sales contract is signed.
2007-11-16 22:10:28 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You should not have access to the earnest money at all. This should have been deposited into an escrow or broker account and not be able to be accessed by either party without the other party's mutual consent.
2007-11-16 21:50:47 · answer #3 · answered by ruby67vette 2 · 1⤊ 0⤋
No. By doing so you risk invalidating the contract which come with a whole lot of liability you do not want!
2007-11-16 21:57:29 · answer #4 · answered by linkus86 7 · 0⤊ 0⤋
You can not use that money for anything except hold the home.
2007-11-17 12:12:57 · answer #5 · answered by frankie b 5 · 0⤊ 0⤋
NO, you shouldn't even have access to the EM.
2007-11-17 14:38:49 · answer #6 · answered by sspice5757 2 · 0⤊ 0⤋