Home Selling in 35242>Question Details

Silvia15,  in 35242

How can Seller keep earnest money if buyer lacked responsibility?

Asked by Silvia15, 35242 Fri Aug 26, 2011

The buyer's changed borrowers and we allowed it. They never filed their taxes so their 4506 was rejected twice my seller was already in escrow on a purchase and has lost their money. Please advise.

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Please advise? Sign a release of earnest money, and go find another buyer.

How can your Seller keep the earnest money? Well, they can sign a statement denying permission for whomever is holding it to release it, then they can defend themselves to an arbitrator or judge. But you know your contracts better than I do, and you probably have an office attorney or counsel you can refer your seller to.

My guess it that the buyer's "good faith effort" doesn't include having their taxes done properly.

I feel for you, Silvia.
1 vote Thank Flag Link Fri Aug 26, 2011
If the Sellers are just looking to justfy, they probably can.
The initial objective was to sell the house.

Probably time to move on, maybe keep $400 for the fees the Title Company will be charging,
and find another set of buyers.

Good luck and may God bless
0 votes Thank Flag Link Fri Aug 26, 2011
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