Home Buying in Dallas>Question Details

dx7230, Home Buyer in Dallas, TX

What happens to the earnest money? See details.

Asked by dx7230, Dallas, TX Sat Apr 5, 2014

What does this mean?

If Buyer cannot obtain Credit Approval, Buyer may give written notice to
Seller within 14 days after the effective date of this contract and this contract will terminate and the earnest money will be refunded to Buyer. If Buyer does not give such notice within the time required, this contract will no longer be subject to Credit Approval. Time is of the essence for this paragraph and strict compliance with the time for performance is required.

Help the community by answering this question:


It sounds like you are quoting a part of your contract, and want to verify if you understand it correctly,
and/or if your agent explained it to you correctly. As real estate agents, we are supposed to advise you to speak to your attorney.

Also, you didn't mention where you are in the process.
So, any answer you'd be getting in this forum would be a general reading of a real estate contract.

What above quote generally means is:
If the buyer does not get a mortgage within 14 days from the effective date and does not inform the seller about it in writing, the buyer is in "hard", and if the buyer does not bring the money to closing, the seller will retain (unless there were other circumstances) the earnest money (or share them with his listing agent - based on the listing agreement).

If there was a written notice given to the seller by the buyer - that the buyer didn't get a mortgage,
the earnest money must be refunded to the buyer.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Sun Apr 13, 2014
Has the 14 days already passed? Consult with your real estate agent regarding this.
0 votes Thank Flag Link Wed Apr 9, 2014
Where is your agent? It looks like someone already filled in the time frame (14 days) presumably your agent so you should ask her/him what that means and why 14 days.

Susie Kay, RealtorĀ®
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240

Servicing your real estate need is my priority!
0 votes Thank Flag Link Sat Apr 5, 2014
The seller filled in the number of days
Flag Sat Apr 5, 2014
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