Home Buying in Covina>Question Details

Michelle, Home Buyer in Los Angeles, CA

THE SELLER WANTS US TO INCREASE OUR EARNEST MONEY DEPOSIT FROM OUR ALREADY SUBMITTED $1,000 TO A NON

Asked by Michelle, Los Angeles, CA Fri Feb 20, 2009

REFUNDABLE $4,000. AND WANTS US TO SIGN THAT CHANGE IN THE ADDENDUM. IS THAT MONEY SAFE ONCE WE SIGN THAT IF THE SELLER BACKS OUT OF THE DEAL????????

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It's proper to increase the earnest money in a counter offer or an addendum, but I wouldn't sign anything that says non-refundable. This does not seem reasonable. This is not a sellers market. You hold the cards. Is the seller a bank?
1 vote Thank Flag Link Fri Feb 20, 2009
All earnest money should be refundable if the home doesn't pass a home inspection, if you can't get a loan, or if the attorney reviews the contract and finds it to be a bad deal for you. You should never allow your earnest money to be non-refundable unless you default on the contract. Please consult a realtor and attorney before you agree to anything.
1 vote Thank Flag Link Fri Feb 20, 2009
I would read the contract carefully . Are you working with an agent or buying directly from a seller. ?If buying without an agent , please get an attorney. Maybe the seller means it is non refundable if you back out for no reason . Make sure you have good contingencies to back out if you do not get a mortgage or if you are not satisfied with the inspection etc. Get an attorney to prepare the contract. What is your state law? Laws vary from state to state.
Web Reference: http://www.gitabantwal.com
1 vote Thank Flag Link Fri Feb 20, 2009
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