Question Details

Ashley, Home Seller in Queen Creek, AZ

We accepted an offer on our home, only to find out that the buyers credit was not what they said it was and

Asked by Ashley, Queen Creek, AZ Fri Aug 15, 2008

the buyers backed out. The title agency is giving the earnest money back to the buyers, is this normal? Shouldn't we get this money to cover our losses?

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It depends on what the purchase and sale agreement says. If it has a mortgage contingency then the buyer would get their earnest money back. If it doesn't have a mortgage contingency then you would get all or part.
0 votes Thank Flag Link Fri Aug 15, 2008
Not knowing what the contract states regarding if the buyer can not qualify purchase home, in some instances YES. However speak with listing agent where they can explain to you terms of contract. HOWEVER title companies are 3rd party neutral, are governed to oversee terms and conditions of sales purchase contract. More than likely if title company returning the buyers earnest money there must be some clause executed contract which stipulates buyer can receive earnest money returned. Sorry hear about your circumstance GREAT QUESTION.
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0 votes Thank Flag Link Fri Aug 15, 2008
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