Home Buying in Troy>Question Details

jhkogger, Home Buyer in Rochester Hills, MI

what constitutes me losing my earnest check?

Asked by jhkogger, Rochester Hills, MI Sun Feb 24, 2013

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This question was asked from this property: http://www.trulia.com/property/3109849309-5925-John-R-Rd-Tro…

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JHogger,

Yes you need to read through your purchase agreement. Usually the only way you can loose your EMD is to change your mind on purchasing. Usually you have to have a mortgage denial or the inspection revealed something that you didn't like so you gave the seller an addendum which stated the problem inspection & you were withdrawing from the Purchase. The withdrawal has to occur within the inpsection period.

Please contact your Buyers agent for further clarification. Hopefully you have one & not just using the sellers agent.

I wish you the best.
0 votes Thank Flag Link Sun Feb 24, 2013
The purchase agreement should spell out what happens if a buyer defaults. Read the intire purchase agreement. There may be more ramifications than just loosing your EMD. Consult with your agent, broker or attorney first though.
0 votes Thank Flag Link Sun Feb 24, 2013
Good Afternoon,

An earnest money deposit can be lost by not fulfilling the terms of a purchase agreement. The terms should be clearly spelled out in the PA. If a buyer attempts to back out after the inspection period or without a mortgage denial letter, the EMD could be at risk. Consult your PA for specific terms and consult w/ your buyer's agent immediately, as time is often a crucial factor. Didn't use a buyer's agent? Consult with the managing broker and/or a real estate attorney ASAP. Good luck!
0 votes Thank Flag Link Sun Feb 24, 2013
Default. The purchase agreement should spell out the terms related to any conditions regarding the earnest money deposit and what protection you have to receiving a refund of the earnest money deposit in the event you do not complete the purchase. If there is a dispute over the deposit you should consult with an attorney.
0 votes Thank Flag Link Sun Feb 24, 2013
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