Special offer
Anonymous

Spam prevention
Ambassador
2,684,009
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Who will win?  The lawyers.

May 10, 2016 07:51 AM
Rainmaker
4,882,355
Richard Weeks
Dallas, TX
REALTOR®, Broker

If the contingency has expired that does not mean the contract is terminated

May 10, 2016 04:36 AM
Rainmaker
7,836,134
Roy Kelley
Retired - Gaithersburg, MD

Follow the terms of the contract and return the property to the market.

May 10, 2016 10:25 PM
Rainmaker
3,416,038
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

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.

May 10, 2016 10:20 PM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Well, if it is expired, the seller still needs to wait till closing date for buyers to come and complete the sale. Who knows?

May 10, 2016 04:46 PM
Ambassador
3,164,294
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

what the contract says. The end.

May 10, 2016 03:06 PM
Rainmaker
4,160,412
John Pusa
Glendale, CA

It depends on the contract. An interesting question.

May 10, 2016 03:05 PM
Rainmaker
2,220,323
Anthony Acosta - ALLATLANTAcondos.com
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Great question for a real estate attorney.

May 10, 2016 12:18 PM
Rainer
321,564
Melissa Jackson REALTOR
Trinity Premier Properties - Azle, TX
Helping You Make The Right Move

It's all in the contract.

May 10, 2016 12:01 PM
Rainmaker
1,525,616
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

I would ask my broker or a real estate attorney unless it is spelled out in the contract.

May 10, 2016 11:12 AM
Rainmaker
1,157,785
FN LN
Toronto, ON

What do the terms of the contract state?

May 10, 2016 08:06 AM
Rainmaker
556,536
Greg Cremia
Shore Realty of the Outer Banks - Nags Head, NC

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.

May 10, 2016 01:36 AM
Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

If it was a financing contingency then the buyer gets the money back in my opinion.

Nov 13, 2016 10:27 AM
Rainmaker
4,572,183
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

It depends.

On the state you practice.

On the purchase agreement terms.   

 

May 11, 2016 12:01 AM
Rainmaker
5,104,931
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

What does the contract say? 

May 10, 2016 10:54 PM
Rainmaker
8,573
Phillip Himes
eXp Realty - Houston, TX
Never Settle for Less, Always Setter for More

If the contingency for financing had expired then the seller has the right to keep the earnest money deposit.  Per the contract.  

May 10, 2016 02:59 PM
Rainmaker
1,239,901
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

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 ....

May 10, 2016 10:52 AM
Ambassador
2,178,603
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

It depends on what the contract says.

May 10, 2016 10:47 AM
Ambassador
1,452,819
Susan Emo
Sotheby's International Realty Canada - Brokerage - Kingston, ON
Kingston and the 1000 Islands Area

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.

May 10, 2016 07:37 AM
Rainer
10,185
Amy Palian
KEAP Real Estate - Winnetka, CA
Real Estate Broker serving Greater Los Angeles

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.

May 10, 2016 06:00 AM
Rainmaker
400,356
Jill Murty, Realtor - Orange County, CA
Movoto - Laguna Niguel, CA

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. 

May 10, 2016 05:04 AM
Rainmaker
474,492
Bill Dandridge
MKB, Realtors - Roanoke, VA
GREEN, ABR, GRI, EcoBroker

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.

May 10, 2016 04:54 AM
Rainmaker
1,844,301
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

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.

May 10, 2016 04:47 AM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

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.

May 10, 2016 04:39 AM
Rainmaker
2,781,173
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

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.

May 10, 2016 04:22 AM
Rainmaker
5,216,398
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Depends on the financing contingency notice requirements

May 10, 2016 03:50 AM
Rainmaker
1,502,998
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

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.

May 10, 2016 02:41 AM
Ambassador
6,393,404
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

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.

May 10, 2016 02:33 AM
Rainmaker
1,466,207
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

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.

May 10, 2016 02:15 AM
Rainmaker
613,494
Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

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

May 10, 2016 01:40 AM
Rainmaker
1,543,727
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

Did you serve a notice to perform?

May 10, 2016 01:29 AM