Home Buying in Middle River>Question Details

Jason Anthony, Home Buyer in Baltimore, MD

do i get back my escrow deposit if contract is terminated?

Asked by Jason Anthony, Baltimore, MD Thu May 22, 2014

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Most real estate contract have a few execution points where in if you terminate the contact within the dates specified you will get your escrow deposit back.

A contract can have a mortgage contingency date - where if you do not qualify and you notify the seller that you do not qualify during the dates specified in the contract your deposit is protected.

A contract can have an inspection contingency date - where after conducting a home inspection by a licensed home inspector and the house is not up to par and you are within the dates specified in the contract your deposit is protected.

A contract can have an appraisal rider - which would protect your deposit during the dates specified in the contract your if the home did not appraise.

A contract can have a home to sell rider (also called a Hubbard clause) it may have an Attorney Approval clause or Well / Septic contingency...Long story short read your contract and know your dates. If you are within your dates specified in the contract - then the sellers must also follow the contract. If you are not within your dates - call your realtor and your real estate attorney TODAY!

Best of luck!

Keri Watkins
Coldwell Banker
1 vote Thank Flag Link Thu May 22, 2014
Several factors are involved with getting your escrow/earnest money back. You entered into a contract and have probably had inspections to determine the fitness of the property. There is a certain time limit that you must adhere to, (which is written on your contract.) If you did not do the inspection or you are past that time limit, you probably can not get your escrow/earnest money back. You may back out if you are not satisfied by the inspection. First you should try negotiating with the seller to fix items. If the home is sold “as is,” you do not have that option. I hope that helps!
1 vote Thank Flag Link Thu May 22, 2014
It depends on the contract. Did you cancel due to inspections during your inspection period? Did your loan get denied? Etc... Read your contract carefully and consult with your real estate agent with any questions you may have.
0 votes Thank Flag Link Thu May 22, 2014
It depends on why the contract was terminated. As long as you did not default on the agreement you should be able to retain your deposit.

If you supply more details, it might be easier to advise on this.
0 votes Thank Flag Link Thu May 22, 2014
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