Can the seller keep my earnest money if he is not willing to give me an extension?

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Can the seller keep my earnest money if he is not willing to give me an extension?

I signed a contract on a home, however the appraisal came in $35,000 lower than the negotiated sale price the contract is contingent on my selling my home. My buyers needed an extension so the closing date was delayed 10 days. The sellers of the home I am buying refused to give me an extension and threatens to keep my earnest money.

Asked on May 30, 2019 under Real Estate Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

Yes, they can keep your earnest money and do not have to give you an extension. You signed a contract and agreed to a closing date; if you cannot close on time, you will be in breach of contract, which would entitle the seller to keep your deposit. Your unilateral (without your own seller's consent) decision to give your buyers an extension does not obligate your seller to give you one. 


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