Home Selling in 33024>Question Details

Joan Mabry, Home Seller in Hollywood, FL

If buyer seeks an FHA loan, can seller stipulate a non-refundable deposit?

Asked by Joan Mabry, Hollywood, FL Fri Dec 5, 2008

One attorney told me this is so, another said he knows of no such restriction.

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I know of no such restriction. It may not make the Buyer happy, but the Seller can always ask.
Web Reference: http://www.jerrifurniss.com
0 votes Thank Flag Link Mon Dec 8, 2008
As David mentioned, a non-refundable deposit does not sit well with MOSt buyers. The type of financing really does not matter; conventional, FHA/VA or otherwise. Many "shark-like" buyer are willing to put up a non-refundable "option" or deposit and try to put together an investment group with plans for increased and improved property returns- sometimes based on the possibility of zoning change or "inside" information.

In residential transactions- unless it is a developer/builder transaction, deposits and the agreement are subject to financing.
0 votes Thank Flag Link Fri Dec 5, 2008
whether it is legal or not I don't know. If I put in an offer and you countered with something that said my deposit was not refundable I would not accept, and I would advise my buyer not to accept.
0 votes Thank Flag Link Fri Dec 5, 2008
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