2,684,009
Who will win? The lawyers.
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Nina Hollander, Broker
Charlotte, NC
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Becca Rasmussen
Highlands Ranch, CO
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Carol Williams
Wenatchee, WA
4,882,355
If the contingency has expired that does not mean the contract is terminated
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Nina Hollander, Broker
Charlotte, NC
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Becca Rasmussen
Highlands Ranch, CO
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Lyn Sims
Schaumburg, IL
7,836,134
Follow the terms of the contract and return the property to the market.
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Nina Hollander, Broker
Charlotte, NC
3,416,038
It will matter what the contract states. Our contracts state upon financing dates expiring they shall be considered waived. Therefore the buyer would lose their deposit. Often the decision is up to a judge if the buyer disagrees.
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Nina Hollander, Broker
Charlotte, NC
4,319,419
Well, if it is expired, the seller still needs to wait till closing date for buyers to come and complete the sale. Who knows?
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Nina Hollander, Broker
Charlotte, NC
3,164,294
what the contract says. The end.
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Nina Hollander, Broker
Charlotte, NC
4,160,412
It depends on the contract. An interesting question.
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Nina Hollander, Broker
Charlotte, NC
2,220,323
Great question for a real estate attorney.
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Anthony Acosta - ALLAT...
Atlanta, GA
321,564
1,525,616
I would ask my broker or a real estate attorney unless it is spelled out in the contract.
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Nina Hollander, Broker
Charlotte, NC
1,157,785
What do the terms of the contract state?
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Nina Hollander, Broker
Charlotte, NC
556,536
It is different from state to state. In nc both parties have to sign a release for the em to get dispersed. If both parties wont sign it goes to the clerk of court where they fight over it.
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Lyn Sims
Schaumburg, IL
3,988,007
If it was a financing contingency then the buyer gets the money back in my opinion.
4,572,183
It depends.
On the state you practice.
On the purchase agreement terms.
5,104,931
8,573
If the contingency for financing had expired then the seller has the right to keep the earnest money deposit. Per the contract.
1,239,901
That has happened except the buyer loan was approved. He argued with the bank wanting a discount on mortgage interest. The seller took 3% EMD.
Sorry ....
2,178,603
1,452,819
Up here Sellers mistakenly believe they will receive the EMD (or deposit as we call it) It goes back to the Buyer without interest or penalty. Of course something specific could have been entered into the contract to contradict this but for the most part, it goes to the Buyer.
10,185
In CA, regardless whether the contingency has expired or not, the seller cannot keep the EMD unless the seller has a loan contingency removal signed by the buyer. If the buyer has signed a contingency removal document agreeing to remove the loan contingency, then the seller is entitled to keep the EMD. However, not unless this document is signed by the buyer, keeping the EMD will turn into a long dispute which could have been prevented had the seller hired a professional who knows what they are doing. For one, before accepting an offer, I suggest to the seller to make sure the buyer has a pre-approval and not a pre-qual. I also suggest getting the seller cross-qualified with a lender of my choosing and someone I trust.
400,356
As the seller's agent, I would have contacted the buyer's lender to discuss the buyer's qualifications and may have countered that the buyer cross qualify with a trusted lender.
In my area, the seller has the option to issue a Notice to Perform 48 hours prior to the expiration of the contingency. The seller may exercise their option to cancel the transaction should the buyer fail to remove loan contingency.
I can understand the seller's desire to keep the EMD, but it's not theirs to keep. Cancelation instructions must be signed by both the seller and the buyer. The seller may try to delay the return of funds, but the EMD should ultimately be returned to the buyer.
If this went to arbitration, the buyer should prevail.
474,492
It depends on the state, and the financing. I think in most cases, though, the EMD will be retained by the seller. What state are you in? What is the wording in the contract? It will explicitly state what will occur if the buyer is in default.
1,844,301
Buyers will loose the EM if the extension was not offered in IL. It's never an automatic that the seller gets the EM.
As a LA, it should never have gotten that far. I would have been waiting for the LO to tell me to put the house back on the market. Lost time fighting about it - mean while seller still has his house & is packed up & ready to go.
4,800,082
In Florida, if the buyer notified the seller that the loan was denied within the appropriate time frame, the buyer will get his EMD back.
2,781,173
Be slow to litigate as it respects no one. We are looking for the definition of happy and that takes many a sit down, with compromise and agreement to bring about. Give & take always comes out well enough.
5,216,398
1,502,998
Out here, if the buyer did not remove their loan contingency they can back out and keep their EMD. If they removed their loan contingency (which is the final contingency), then legally they would loose their EMD. Expiration dates are not always held to, however the seller has the option to send out a "notice to perform" telling the buyer to remove their contingency or risk cancellation and loss of their EMD.
All said and done, escrow will still need a form signed by all parties agreeing to the distribution of the EMD.
6,393,404
Most will refund so as to avoid a dispute, but if that is routinely done then what is the purpose of having an EMD?
Keep it to cover expenses incurred by seller and their agent.
1,466,207
Here both parties have to sign a Release which states where the EMD will go. If they can't agree and one party refuses to sign, the judge will make the final decision.
613,494
Read what the contract says regarding deadline...every contract is different with different terms.
I would be surprised that someone who is financing would not have a financing contingency. (No approval, no deal, money refunded).
If the contingency expired and sellers says nothing, usually they have given up their right to complain later.
No standard answer...the contract rules.
Eve
1,543,727