Earnest Money
REM #LAW 795
By Ilyce R. Glink and Samuel J. Tamkin
Summary: A condo owner puts earnest money down on a new condo. The owner can’t sell his condo and worries about losing the earnest money. The builder says he’ll keep the earnest money. What should the buyer do?
Q: I put down earnest money on a condo last May. I was also selling my condo. My condo didn't sell and I was very honest all along with the builder of the condo about the status of my condo.
The builder said all along not to worry about the contract, but they were just stringing me along. Now they said they don't have to give me any of my deposit back. The Austin, Texas market is still strong, so they should not have a problem reselling my unit. Can you please help me get my money back?
A: You need to review your purchase agreement for the condominium you are purchasing. I might even suggest that you talk to a real estate attorney to review your contract and any other documents you have from the builder of your condominium.
There may be something in those documents that may allow you to back out of the deal.
However, you signed a contract and agreed to buy the new condo. If the contract doesn’t give you the right to cancel the deal if you don’t sell your current home, you would be required to close on the purchase whether or not you have sold your home, or even if it would put you into bankruptcy.
The builder’s remedies would be set forth in the contract. If the contract specifies that the builder gets to keep your deposit as the builder’s remedy, then they may be entitled to keep it unless there is case law or a state law that would require them to give all or a portion of the money back.
Please take your documents and go to a good real estate attorney who is familiar
with new construction laws in your area.
NOTE: Ilyce R. Glink's latest ebooks are "Credit Scoring Secrets" and "How to Find a Great Real Estate Agent," which are available at her website, www.thinkglink.com.If you have questions, you can call her radio show toll-free (800-972-8255) any Sunday, from 11a-1p EST. You can also write to Real Estate Matters Syndicate, PO Box 366, Glencoe, IL 60022 or contact her through her website, www.thinkglink.com © 2007 by Ilyce R. Glink. Distributed by Tribune Media Services
Capital Gains Tax Question
1031 Exchanges to Avoid Capital Gains Taxes
Quitclaim Deed Does Not Change Mortgage
State Residency Requirements
Mortgage Fraud
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
