What to do about a delay in closing and trying to get our earnest money back?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What to do about a delay in closing and trying to get our earnest money back?

We are home buyers, however the house cannot be closed on time due to a loan processing delay. We requested that the seller extend but with no luck even though we accepted seller’s very strict terms. During the whole loan processing, we timely submitted all requested documents. We didn’t do anything wrong. The loan delay is out of our control. Is there any chance that we can get the earnest money back? By the way, we have 27 days to give seller written notice if we cannot obtain the credit approval. However, this date is already passed and at that time we already got the commitment approval from lender.

Asked on September 23, 2015 under Real Estate Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

No, unfortunately, you can only get your earnest money or deposit back if 1 there was a finance contingency in your contract, allowing you to get the money back if financing fell through and 2 you complied with all the terms, including especially the end-date, of such contingency. If you had such a contingency, but are past the date by which you had to pull out of the sale, then the seller would be allowed to keep your deposit.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption