What if the seller does not return the earnest money?
The contract provides for an attempt at mediation (30 days), and then suit. If a suit was needed for a failure to return the earnest money by the seller, after compliance with the proper timely notice provisions by the buyer, I think that the seller would be foolish. Remember the contract has a winner takes all attorneys fees paragraph. If that notice is properly delivered and “there was something not to like”, I think that the buyer wins and if I were the judge I would not be a happy camper regarding the actions of the seller. So do I need a loan commitment prior to giving the notice? I suggest, as Fran Winston put it so well a few years ago, that “you got to have something not to like”. Just as with the insurance section or the inspection notice section, you need to have something that you don’t like. A written loan commitment would work real well. If push comes to shove (attorney talk for litigation) then the buyer would be well served if the buyer had an email or letter from the le
Related Questions
- I canceled my contract within the option period however the title company will not release the earnest money because the seller will not sign a release of earnest money. Why?
- Can a seller legally keep my earnest money deposit even if they already resold the property to someone else?
- What if the contract fails and the seller and buyer cannot agree on who is entitled to the earnest money?
