Home Buying in Ocean City>Question Details

Helen, Home Buyer in Ocean City, NJ

What happens to my $1,000 deposit that I put down on a home if the deal falls through?

Asked by Helen, Ocean City, NJ Wed Aug 22, 2012

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8
Helen, you get your money back if the deal does not go through unless you breach the contract.
Ken Fowser
Remax at the shore
609.412.8258
1 vote Thank Flag Link Wed Aug 22, 2012
Thanks, when do they actually cash the check?
Flag Wed Aug 22, 2012
Unless there is a breach of contract (per terms OF the contract) deposit money is returned to the buyer.
0 votes Thank Flag Link Thu Aug 23, 2012
Deposit is refunded as per the contract contingency, review your contract. Hope this helps?
0 votes Thank Flag Link Wed Aug 22, 2012
Additional Note: if the seller believes you have breached the contract, the seller may seek legal remedy for damages in an amount greater than the deposit. Likewise, if you think the seller has breached, you can pursue legal remedies also.
0 votes Thank Flag Link Wed Aug 22, 2012
Deborah Madey, Real Estate Pro in Brick, NJ
MVP'08
Contact
If the deal falls through before the conclusion of AR - attorney review, or the time allotted for AR - attorney review, you get your deposit refunded.

If the deal falls through after the conclusion of AR, it depends upon the reason. If you are not in breach, the deposit is refunded. Sometimes, the buyer does not believe he/she breached a contract, but the seller thinks the buyer did. In those instances, the deposit is not released until the parties reach agreement or a court decides the issue for them. In most cases, the parties do reach an agreement.
0 votes Thank Flag Link Wed Aug 22, 2012
Deborah Madey, Real Estate Pro in Brick, NJ
MVP'08
Contact
That depends on WHY it fell through. There are built in protections for the buyer if there are problems with the home inspection or termite inspection. Of course the biggest "out" is if you have sincerely tried to get a mortgage and can't.
If any of these are the reasons your deal fell through, you need to write a letter to the party holding the funds ( specified on your contract ) and request the release , the seller has to agree in writing and then the funds can be released. If you just changed your mind, you could be in trouble.
0 votes Thank Flag Link Wed Aug 22, 2012
That will depend on why it fell through and what was in your contract. I would ask your agent about this and they should be able to tell you since they most likely wrote the contract for you.
0 votes Thank Flag Link Wed Aug 22, 2012
As with many things, Helen, it all depends! Did the deal fall through for one of the reasons that the contract was contingent on? For example, if you had an inspection contingency, got the inspection results, found that there was a flaw you were unwilling to deal with, you can break the contract and get your deposit back. Similarly, if you could not get a loan on the property (whether it was due to your credit or a low appraisal of the house) and you had a financing contingency in the contract, you are released and the deposit is returned. If the deal fell through, however, because you just got cold feet, then you risk losing the deposit. Best of luck...Jim
0 votes Thank Flag Link Wed Aug 22, 2012
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