Comments on: Earnest Money — What, why, how much?

By: Jay - The Phoenix Real Estate Guy

Jay - The Phoenix Real Estate Guy — Tue, 15 Jul 2008 20:42:00 +0000

Jack - unfortunately, there is not much I can offer. Your contract (hopefully) has language that addresses inspections, repairs, your recourse and the disposition of earnest money. You need to address your concerns with your agent, or an attorney.

By: Jack

Jack — Tue, 15 Jul 2008 20:28:10 +0000

We gave an offer to a house and the offer was accepted. We put $5000 earnest money to it. The inspection report came out that the house has carpenter ants in all three levels and other defects. So with the help of the selling agent, we disprove of the defects. In the offer, we did say that the seller has the right to repair. But we feel that the defects are not insignificant, we don’t want the house anymore. But the seller didn’t sign the release form yet. I worried that we may lose our earnest money. Any advice is helpful and appreciated.

By: The Phoenix Real Estate Guy

The Phoenix Real Estate Guy — Wed, 06 Feb 2008 13:44:26 +0000

Regia - I can’t really get involved in an existing contract between two parties. Your agent should be able to help you. Also, the answer may vary by state. If you are in Arizona, and are using the standard Arizona residential resale purchase contract then you should be able to get your earnest money returned (provided no additional provisions were written into the contract).

But there is no way I can say for sure without reading your contract.

By: regia

regia — Wed, 06 Feb 2008 11:47:46 +0000

i was told that i qualify for a loan and received a closing date i put down earnest money,then a day before my closing date i was told that i did not qualify. my question is do i get my money back?

By: marilyn patterson

marilyn patterson — Wed, 09 May 2007 03:43:03 +0000

my daughter applied to a bank for a house loan and she told them she had 2 months left to her bankruptsy and was told by a woman there that it didn’t matter. She put down $1,ooo in ernest money and $450.00 for an appraisal. She is wondering who has a say over her money and shouldn’t this have been put into escrow? She was given a May 18 closing so shouldn’t all the investication already been made. She is heart broken and she hopes she will have her money returned.

By: Jay - The Phoenix Real Estate Guy

Jay - The Phoenix Real Estate Guy — Sat, 17 Mar 2007 07:02:25 +0000

Ana -

I can’t really get involved in an existing contract between two parties. Have you asked your agent about this? I’m thinking that since you approached the title company and it sounds like you called the buyer that perhaps you don’t have an agent representing you?

There appear to be inconsistencies in some of what the title company is telling you. You would have to cancel the transaction and provide a “cure period” for the buyer to resolve, but the typical period for that is 3 days, not 10.

If you have an agent, I encourage you to talk to them immediately. Their job is to help you through this. Is the buyer’s agent involved at all? They are also responsible for affecting this transaction.

By: Ana Santiago

Ana Santiago — Sat, 17 Mar 2007 00:44:26 +0000

I had an offer on my home and it was placed in title. We went through the appraisal (that I paid) termite inspections (that I paid) and went through to the closing date and didn’t hear anything from the buyer. It is now a week later and nothing. I went to the tile company and asked for the earnest money and they are now saying that I have to cancel the transaction and ask for the money while giving the buyer 10 days to resond. I did my due diligence and the buyer never responed to phone calls. Is the buyer in breach of contract? This is a standard real estate contract in Arizona.

By: The AZ Real Estate Guy

The AZ Real Estate Guy — Thu, 17 Aug 2006 19:09:35 +0000

Cindy -

Without seeing your contract, it’s very difficult to say. Does the contract have any provisions for WHAT can be done if the builder failed to meet their obligation (on the inspections)?

Did you use a real estate agent when you signed the contract (I’m talking an independent agent, not the builder’s agent)? If so, call them! If you used the builder’s agent they will likely be no help–though they *should* be willing to explain the contract to you. Even if they are employed by the builder, the have a responsibility to you. But let’s face it, human nature says they won’t be much help. This won’t do you any good, but it should be said — ALWAYS use a buyer’s agent on a new build! The builder pays the commission, a buyer’s agent won’t cost you anything.

There’s a very good chance that somewhere in the contract is language similar to “buyer is responsible for verifying any items of material importance”. So them saying it was in the city limits may mean nothing contractually. It may in fact, have been your responsibility to verify that if it was important to you. (And probably within a certian time period).

How much earnest money are we talking about? If you didn’t use an independent agent, then your only choice may be to have a real estate attorney review your contract. What state is the home in?

Jay

By: cindy

cindy — Thu, 17 Aug 2006 04:07:27 +0000

Can someone help? I put down earnest money for a house not yet built.
The contract indicated I would be allowed to inspect the house before the walls were sealed. That didn’t happen.
It also states the house is in not within the city limits of where I was told it was. Due to taxes
and that particular city’s government, I don’t want to live there. Do you have any recommendations on how I can
get my money back?

By: Mcgill

Mcgill — Fri, 30 Jun 2006 08:41:40 +0000

Real estate business is all bout getting into risks with a big some of money at hands. And if you
are not interested in giving away a bit then it’s not yer cup of tea.