Depends on the contingencies in the contract. On My contracts, I always have an inspection contingency where the EMD is refundable if and when during the due dilligence period the buyer wants to terminate the contract.... more
Before submitting a HUD offer, your agent has to certify to the following: [copied from the HUD site - www.Bidselect.com]
You are about to submit an offer to purchase a property from the U.S. Department of Housing and Urban Development (HUD). Before submitting an offer, you must have in your possession the following:
1. A completed HUD 9548 Sales Contract including appropriate addenda signed by the qualified purchaser(s) whose Social Security number(s) will be entered on the offer submission screen.
2. Proper Earnest Money to hold on behalf of HUD. Proper Earnest Money is considered the appropriate amount and in certified funds. (No personal checks or cash.)
Submission of an offer defining the purchaser(s) as an Owner Occupant when the purchaser(s) actual status or intent is that of an Investor, knowing the same to be false, subjects the person placing the bid to a possible $250,000 fine or two years imprisonment or both, as per Paragraph O of the Conditions of Sale on the back of the HUD-9548 Sales Contract.
If you have not complied with the terms set forth in this Warning, the offer you enter will be considered FRAUDULENT. Fraudulent offers subject all parties including the party entering the offer and the purchaser(s) to severe penalties under the law. Signify that you understand this warning and have fully complied with all the HUD requirements by completing all fields below.
I understand the warning and the disclaimer. Yes, this is a good faith offer. I also certify that I am a licensed real estate agent in good standing with all applicable licensing authorities and further agree to the Agent Policy:
Certification of Broker: The undersigned certifies that: (3) he/she has explained fully to the purchaser the entire terms of the contract, including Condition B on the reverse hereof; and (4) he/she is in compliance with
Sellerâ€™s earnest money policy as set forth on HUD forms SAMS-1111, Payee Name and Address, and SAMS-1111-A, Selling Broker Certification, which he/she has executed and filed with Seller.
If your agent did not comply with all these items, you should have a brief conversation with the agent's broker, explain exactly how the deal happened, and ask politely when your check will be ready.