Home Selling in Coppell>Question Details

Concerned Se…, Home Seller in Coppell, TX

Contract contingent upon financing. Buyer approved as of contract deadline but turned down next day. Now can't buy house. Who gets earnest $?

Asked by Concerned Seller, Coppell, TX Sat Nov 5, 2011

Help the community by answering this question:

Answers

9
Is your objective to get his Deposit, or to sell the darn house?

If his Contingency expired, or he lost his Loan after he released the Contingency;
then he is on the hook.
You can give him an extension to find another Lender; if you've a mind to.

Good luck and may God bless
2 votes Thank Flag Link Sat Nov 5, 2011
What do you mean by contract deadline? What does your agent say? Early in the process the buyer has at least 3 and sometimes 4 ways to terminate the contract and receive a refund of the earnest money.

A party who wrongly refuses to release earnest money is liable for three times the amount as damages.
1 vote Thank Flag Link Sat Nov 5, 2011
Buyer will get it back. As you said, contract contingent on financing. No financing - no contract to buy. Earnest money goes back because they did nothing wrong.
1 vote Thank Flag Link Sat Nov 5, 2011
From what you provided the seller would be eligible to keep the money. As Bruce mentioned there are other outs too that you really need to talk to your agent about. Both parties have to agree before the earnest money can be released to either party. You may also want offer to split the earnest money to avoid a battle that may jeopardize another contract being put on your home. This is a complicated situation you really need to sit down and speak with your agent. I would have them call the other agent and see what the other side is offering as well.

Best of luck to you. While they may in fact lose their earnest money I know this is also a very tough situation for you as well.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
listings@dongroff.com
0 votes Thank Flag Link Sun Nov 6, 2011
Your Agent and Title Company will give the best guidance on your personal situation. The manner in which you were notified and the reason given for termination bears a lot of weight on the answer to your question.

My best advice is not to overreact. Your goal is to sell your home, perhaps this isn't the proper lender for this buyer. The deal may still stay together.
0 votes Thank Flag Link Sat Nov 5, 2011
It depends.... just based on information above, I would think the seller, but there can be other outs for the buyer.
So there are many other contract provisions to consider.

Check with your realtor or attorney who is handling the sale.

It's not uncommon for the seller to return the earnest money and move on. Your job is to sell the home, not fight or fret over $1000 earnest money.

To see real estate market updates in Coppell..check out the link below.
0 votes Thank Flag Link Sat Nov 5, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
If the buyer was approved and then the house didn't appraise the buyer gets it. If the buyer said they were approved, then came back after the financing contingency was finished and said they were no longer approved, AND they have no more contingencies then the earnest money should belong to you. But, both parties have to agree to the release of the earnest money to the appropriate party - if there is a disagreement about who it belongs to the title company usually will not release it until the disagreement is settled. They are neutral in your deal - they don't work for you and they don't work for the buyer.
0 votes Thank Flag Link Sat Nov 5, 2011
Person to answer all your questions is Realtor representing you . Terms and conditions are governed by the executed sales agreement.

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Sat Nov 5, 2011
What day did the financing addendum say they had to obtain financing? Usually its 14 days from execution. If it was the day after the financing addendum stated then you have a claim to it.
Web Reference: http://www.realtordamon.com
0 votes Thank Flag Link Sat Nov 5, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer