Home Buying in 90045>Question Details

Se, Home Buyer in 90045

Regulations of Earnest Money/ Initial deposit Regulations

Asked by Se, 90045 Tue Sep 8, 2009

I am in the process of buying a short sale. I need to provide a 3% deposit for earnest money.
Sales contract states no home warranty and property to be sold in current physical condition which is "as-is" subject to any inspections buyer deems necessary. "

If home inspection turns out mold damge, or any termite damage and buyer (me) change my mind about buying the property (because the price is not negotiable (that's what i am told)) then will I lose my deposit of 3% (which is a huge chunk) as the sale prices is 385k.

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Answers

5
Does you State have a Short sale addendum? If so, ask for one and use it, it should allow you to get your money back in those situations.

Good Luck!
0 votes Thank Flag Link Wed Sep 9, 2009
Se, Rebecca is absolutely correct about using CAR Form SSA (Short Sale Addendum)!
0 votes Thank Flag Link Wed Sep 9, 2009
Your Realtor should be using the ss addendum which has a box indicating that the deposit will not be given by the buyer until the short sale has been formally approved by the bank and your offer has been accepted. That way, you can inspect the property prior to any check being transferred and know what you are getting into.

It is super important that you work with an excellent, experienced Realtor when purchasing any real estate.
0 votes Thank Flag Link Tue Sep 8, 2009
Hi Se,

You should be working with an agent experienced in short sales to help you through this process. An "As-Is" sale simply means you are buying the property in its current condition and the seller will not make any repairs.

If you made your offer subject to a home inspection and/or pest inspection and find that the repairs needed are too extensive, then you can choose to not buy the property and your earnest money deposit should be returned to you. The inspection period is there to protect the buyer. In paragraph 14 of the California Association of Realtors contract it states that the Buyer, shall in wiriting, remove applicable contingencies by the time period set forth in the contract or cancel the agreement in writing.

You need to refer to your purchase agreement, speak with your agent, and/or consult with a real estate attorney to understand clearly what agreements you have made or are about to make in the purchase of this property.

April Tavares, GRI, ASP
Realtor, DRE License #01742179
Web Reference: http://www.AprilTavares.com
0 votes Thank Flag Link Tue Sep 8, 2009
Se, typically, you can cancel the contract within the investigation period allowed by the contract and still get your deposit back (READ YOUR CONTRACT AND ANY LENDER ADDENDUMS). However, cancel outside of this contingency period and your deposit is at risk.

You may also have a loan and/or appraisal contingency that can be used to cancel the contract. Talk to your Realtor for advice!

Best, Steve
0 votes Thank Flag Link Tue Sep 8, 2009
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