Contract Has Answer To Escrow Refund
REM #A761
By Ilyce R. Glink
Summary: A ThinkGlink reader would like to back out of a real estate deal. He is wondering what will happen to the money in escrow. Ilyce explains how earnest money and the seller’s right to sue him are explained in the contract.
Q: What is the penalty, if any, for deciding not to close on a home if you’re
already in escrow?
A: It depends on what your contract says. Are you withdrawing because the house
failed inspection and you have an inspection rider that permits you to cancel
the contract in this case? Or, are you backing out simply because you've changed
your mind.
Typically, when a buyer backs out of a deal, he or she loses the earnest money
(so called because it shows how "earnest" you were about buying the
property). But the seller may have the right to sue you for his or her damages
caused by your failure to close. Whether a seller has this right will be spelled
out in the contract for purchase of the home.
Please consult with a real estate attorney for more details.
NOTE: This column is distributed by Real Estate Matters Syndicate, PO Box 366, Glencoe, Illinois, 60022. This column may not be resold, reprinted, resyndicated or redistributed without written permission from the publisher.
Quit-Claim Deed Question
Quit Claim Deed Transfers Property Taxes
Deed in Lieu of Foreclosure Will Hurt Credit Rating
How To Transfer Interest In Property
Why A Living Trust Is Worth The Cost
Link to This Article
Like what you've read? Spread the word! You can link to this article
from your website by copying the following code and adding it to
a page on your website:
Copyright ©2001-2007. ThinkGlink, Inc.
All rights reserved. Reproduction of material from any www.ThinkGlink.com pages without permission is strictly prohibited.
Site designed by Walker Sands Communications
