Home Buying in 66202>Question Details

Tnbuyahouse, Home Buyer in 66202

Is it ethical for a realtor to suggest 1,000 nonrefundable EMD, plus two more nonrefundable 1,000 payments during a two month period before closing?

Asked by Tnbuyahouse, 66202 Tue May 10, 2011

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Susan Wiley’s answer
I would be curious as to the reasoning behind this. There isn't a non-refundable EMD in Kansas if you walk away from you offer during the 10 day inspection period or the 5 day resolution period. A realtor has nothing to gain from the EMD, as the buyer has the option of keeping the earnest money depending on when you back out of a fully-executed contract. It's not uncommon to have additional EMD made during a new home construction project. This protects the builder from a buyer creating a very custom home and then walking away from it with, creating a home hard for a builder to sell because of the customizations. If you still have additional questions and are in the Kansas City metro area I would love to help you out.
0 votes Thank Flag Link Tue May 10, 2011
Give us more details on why? It is hard to tell with just the statement you made above. In Alabama, there is actually no such thing as a nonrefundable EMD, but I don't believe you are in Alabama, so it may be different in your state.
0 votes Thank Flag Link Tue May 10, 2011
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