Home Buying in Frederick>Question Details

Lohfly, Home Buyer in Providence, RI

hud accepted an offer, I reviewed hoa docs and decided to cancel. they won't return earnest money. Legal?

Asked by Lohfly, Providence, RI Thu Feb 9, 2012

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7
Hi Lohfly,

Your are going to have to review the specific terms of your offer to determine if you are eligible for a return of your deposit. Foreclosures are often exempt from disclosure rules and this could include HOA docs. The secondary issue would be were the docs delivered and signed for and the request for cancellation received within the 5 days after receipt.
0 votes Thank Flag Link Sun Feb 12, 2012
If you are an investor, you will not get your earnest money back if you don't settle, no matter the reason. If you are an owner occupant, you can usually wrangle 50% of your earnest money back. But you'll probably need some help to get through all their particular paperwork. Read your contract carefully, and you'll see that investors cannot get their deposit back, no matter what. At least that's how I have always read and understood it.
0 votes Thank Flag Link Thu Feb 9, 2012
You should have signed for receipt of the HOA documents or what we call the transmittal document from showing the date and time you received the HOA documents. Maryland law allows you 5 days to cancel the contract form the date you received them.

Did you or your agent notify HUD youwere declaring the contract.."Null & Void" with-in the 5 days??

Greg Myers
RE/MAX Realty Group
0 votes Thank Flag Link Thu Feb 9, 2012
I have to agree with Charlotte, ask for the EMD rejection in writing. Make sure in your contract you had a contingency to review the HOA docs and that the deadline didn't pass. Review your contract to make sure you was in line with all time-frame and speak with your agent or his broker and have them get your EMD back.
0 votes Thank Flag Link Thu Feb 9, 2012
Good Evening Lohfly,


I would suggest you to talk to your agent, or/and to seek a legal advise.
0 votes Thank Flag Link Thu Feb 9, 2012
In Maryland, as long as you met the deadline to review the documents, you can withdraw your offer without penalty (i.e. you get your deposit back) if the reason for your withdrawal is due to the HOA. However, I don't know if HUD has made an exception to this rule or not so I look forward others' answers to this very important question.
0 votes Thank Flag Link Thu Feb 9, 2012
I would suggest asking for HUD's rejection of your EMD in writing? If you had a contingency in the contract for a review period of the HOA docs and didn't waive your right to review them, I would definitely have your Agent contact the listing broker for help in getting your EMD back. Good luck!
0 votes Thank Flag Link Thu Feb 9, 2012
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