How doI go about making a depositfor a house purchase non-refundable?
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How doI go about making a depositfor a house purchase non-refundable?
I am in contract with a very nervous elderly doctor on the sale of my house. I am scared he will back out. In order for me to go forward I have to give 2 renters a 30 day notice to vacate, and will loose $1900 a month income. Is it reasonable for me to ask this man to sign something saying he does not get his earnest money back if he’d back out of the deal?The buyer has a very strange personality, and the potential to put me into big financial trouble.
Asked on September 24, 2010 under Real Estate Law, Michigan
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
First of all, get a lawyer here. You have way too much going on with the contract and the leases to be playing around like this. Second, do not give the renters the 30 days notice until the closing date is set, unless you anticipate a problem getting them out. Again, consult with an attorney on this. So I am assuming that you already signed the contract? Generally contracts for sale have provisions that indicate what will happen to the funds upon the default of the parties. Does yours? Having something written up now may be binding but really may not be under your state contracts law. It would be an amendment and how it is written is important. May I suggest that you keep the place on the market (again, consult an attorney in your area as to the legality of this action) so that you have a back-up buyer just in case? Good luck.
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