How do we get our deposit back after backing out of a deal?
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How do we get our deposit back after backing out of a deal?
We entered a real estate contract to purchase a multifamily unit with no
inspection required. Just before 30 days the insurance company stated they need an inspection to insure us. We tried to get the inspector in the units and the seller delayed now putting us past 30 days once we got in. After the resort came back they declined is for insurance due to the issues. Now the bank will not do the loan. How can we back out now and get our $5000 deposit back?
Asked on July 12, 2018 under Real Estate Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
You can't get your deposit back based on the facts your describe, unless there was some term or provision in the contact allowing you to terminate you sale and have your deposit returned in these specific circumstances. Otherwise, if the seller is ready, willing, and able to sell and *you* are the one who cannot or will not go through with the deal, the seller can keep your deposit. Even if the reason you cannot go through is that you could not secure insurance or a loan, that is still your responsibility, since it is your obligation to ensure you have those things. Based on what you write, they may retain your deposit.
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