On a short sale, if a buyer back outs from an approved/accepted sale and has willingly forfeited the earnest money, who gets that money?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

On a short sale, if a buyer back outs from an approved/accepted sale and has willingly forfeited the earnest money, who gets that money?

We are not in foreclosure and the bank approved the sale. There will be a deficiency that the bank agreed to forgive. The agent and the contract are between us the seller and the buyer. The bank is not listed as the seller or even referenced in regards to the earnest money. Our agent isn’t sure what the bank is going to say.

Asked on August 11, 2012 under Real Estate Law, Wisconsin

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

From what you have written about, if there is no agreement between the seller and the bank holding the loan on the property being sold as to who receives the earnest money on a forfeiture of it by the buyer, then the seller of the property gets such because the seller is still on legal title to the property.


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