I was not approved for a loan. Can I make seller return my deposit?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

I was not approved for a loan. Can I make seller return my deposit?

Owner selling home. My offer was accepted and I gave her $1000 deposit. I was not able to obtain financing. She cashed my check and does not want to return deposit. What recourse do I have?

Asked on June 29, 2009 under Real Estate Law, Louisiana

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 14 years ago | Contributor

I am not admitted in Louisiana but all states require that a contract for the sale of real estate must be in writing.  Lenders would also need to see something in writing in order to start the loan process.  Do you have a contract? The contract should say what would happen if you could not get a loan.  Return of deposit is usually standard in real estate contracts. From the way you phrased your question it would appear that you were doing this without help from an attorney, who would help you get the deposit back.  You may have to sue the woman in small claims court. Without a contract you may have difficulty but bring with you the cancelled check, your loan application and denial, and any other form of proof you may have (witnesses, etc). Good luck.


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