Home Buying in 75104>Question Details

Leeslees, Home Seller in 75104

Some one put an offer on my house, we were waiting on closing, then there financing fell thru, do i get the ernest money that they put up..

Asked by Leeslees, 75104 Mon Apr 2, 2012

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6
The first step would be for your agent to submit a release of earnest money. If the buyers are not willing to sign off, then you need to review Paragraph 18D of your contract, and follow the instructions to send a written demand to the title company.

Good Luck,

Erica Texada
214-680-4566
1 vote Thank Flag Link Mon Apr 2, 2012
That's a great big "maybe"
We can't know the answer without knowing what the contract says and the events that took place.

The buyers have a limited time to get their financing approved. If they don't tell you that they can't get the loan, they could lose their earnest money. That depends on the date in the Financing addendum and whether they sent you notice of rejection.

Your Realtor can advise you whether you're entitled to the earnest money and assist you with the proper procedure to follow to request the earnest money from the escrow agent.
0 votes Thank Flag Link Wed Apr 4, 2012
Everything is based on the executed sales agreement . Recommend speak with your listing agent

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Mon Apr 2, 2012
Earnest money returns are sometimes tough issues. Did you have a date in the contract for the buyers to show they have approval for their financing? If they can't show they have it by that date, they can usually get their money returned.
0 votes Thank Flag Link Mon Apr 2, 2012
This is a good question and one we run into just about every day. It depends on many factors, of which some where mentioned here. Typically buyers agents structure offers that benefit their buyers, such as repairs needed that might not be disclosed on seller disclosure notices, as a way to back out of a contract, without losing earnest money but that is also covered in the option period section of a contract for purchase. The inability to obtain financing, is the number one reason why properties do not close but most sellers require a letter from the buyers finance company to confirm this, again, it would be in the third party financing agreement. There are also time constraints written into this contract as well. Most often, the contract has a certain number of days written in, that allows a buyer to withdraw an offer due to the inability to obtain financing without losing their earnest money. Look for how many days the buyer had to obtain the financing and see if they exceeded it before telling you they could not get financing, if they exceeded it, you can usually keep the earnest money. The answer to your question should have already been discussed prior to you accepting any offer on your home but ultimately it is your listing agent that can answer this question for you because they have all the contracts and documents on hand that would tell them the answer.
0 votes Thank Flag Link Mon Apr 2, 2012
Thanks so much for your help, you response was very helpful
Flag Mon Apr 2, 2012
That would depend on your contract. Many have clauses that state if the financing falls through the potential
buyer doesn't penalized, BUT like all things having to do with contracts, there are time limits. Have your Realtor go over with you the Third Party Financing Addendum of the contract to see how much time the buyer had to give you approval of financing and if you have questions or believe the money belongs to you consult an attorney, as REALTORS are not allowed to give any kind of legal advice.

Please give me a call if I can help with anything else!

Miracle Bennett, REALTOR®
RE/MAX Preferred Associates, Cedar Hill
214-763-1857
0 votes Thank Flag Link Mon Apr 2, 2012
thanks so much for you help
Flag Mon Apr 2, 2012
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