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Who is entitled to the earnest money?

Posted on: 26th Jul, 2010 06:37 pm
My husband and I decided to buy our first home a couple months ago. After looking for a while we found one. Since we were pre-approved for a mortgage it was fairly easy getting the ball rolling. The sellers accepted our offer, (which included them paying for a termite inspection) and we set a closing date. In that time frame my husband lost his job and had to seek new employment. This changed our loan approval and the deal fell through. Now the seller is wanting the earnest money, money for the termite inspection, and the abstract. Our real estate agent said the earnest money is ours but since the seller is a lawyer she is worried he might sue us for the rest. Can he do that? We didn't back out of the sale, it fell through due to no fault of ours.
It should state somewhere in the purchase agreement whether earnest is to be kept by the seller or buyer if the buyer can't find financing.
Posted on: 27th Jul, 2010 08:05 am
Hi Sam! I know I get to keep the earnest money. My question is can he actually demand the money for those other things? He tried strong arming us over the earnest money but I am standing firm. Our contract says we are entitled to keep it.
Posted on: 27th Jul, 2010 06:17 pm
Welcome Guest,

If your contract states that you're entitled to keep the money, then the seller cannot strong arm you in regards to the money. You can take legal help against the seller if he is threatening you.
Posted on: 28th Jul, 2010 12:23 am
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