What to do if my parents were trying to buy a house and unfortunately did not get approved?

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What to do if my parents were trying to buy a house and unfortunately did not get approved?

Aside from the payment to the agent, they have already given at least $5,000 as down payment. Since they were unable to approve my parents, how long does the agency have to reimburse them the money?

Asked on December 29, 2012 under Real Estate Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Who did not approve your parents? If a lender did not approve them for financing (e.g. a mortgage), your parents would not have any recourse unless the offer they put in on the home included a "finance contingency," or a clause that if they were denied financing, they would receive their down payment back. In the absence of such a clause or contingency, however, if they are turned down for financing and cannot purchase the home, the seller may keep their deposit.

If this is not what you are asking about, you should re-post your question with additional detail.


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