Home Buying in Northeast>Question Details

Mycroft, Home Buyer in Reno, NV

Earnest Money Question

Asked by Mycroft, Reno, NV Wed Apr 29, 2009

If I make an offer, contingent on my getting financing, it's accepted and I can't get financing, is my earnest money refunded?

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I am a Realtor in Tennessee, and based on my experience here, I would say the reason to put a "contingency" of any kind in the offer, is to protect the buyer from losing their earnest money. The three most used being "Financial" "Appraisal" & "Home Inspection"

Charu Shah
Realtor
1 vote Thank Flag Link Wed Apr 29, 2009
If your realtor puts the right verbiage into the contract then yes. This is just one of many reason a buyer should use a realtor to protect their interest.
Web Reference: http://www.chancegates.com
0 votes Thank Flag Link Fri May 15, 2009
I think it will ultimately depend on how it is worded.

There may be an alternative method that I have used to handle this. If you and the seller are unable to come to an agreement on how cancelation instructions are to be worded, then you are technically still in contract with that seller. Have your agent check to see if the selling agent has placed the home back on the market as an active listing. If they have, then your agent then can demand from the listing agent/broker that it be changed back to a pending status until escrow has actually been closed. This means the home will not be on the open market. Chances are the seller would rather forget about earnest money rather then keeping their home off the market. Especially since it is still declining.
0 votes Thank Flag Link Fri May 15, 2009
Like the others said it depends on the verbiage in the contract. Closing costs incurred through the escrow may be deducted from your earnest money. Have your Realtor ask his broker or a real estate attorney.
0 votes Thank Flag Link Wed Apr 29, 2009
It all depends on the wording of the contract. Most of the time you get ALL of your money back.
0 votes Thank Flag Link Wed Apr 29, 2009
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