Are we entitled the earnest money if our buyer did not close?
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Are we entitled the earnest money if our buyer did not close?
We had a contract on our house that specified closing on the 22nd of the month before last. We agreed and have since moved out of state. We checked for closing information and were told on the 21st that they would need to postpone until the 18th of last month. We again agreed. On the 17th were told they would need another extension. We didn’t sign that time.
Asked on November 1, 2011 under Real Estate Law, Ohio
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Whether or not you are entitled to the deposit for the purchase of your home due the buyer's failure to close escrow on the parcel you are writing about depends upon what the written purchase agreement states and whether or not the buyers have waived all contingencies to close the escrow.
If all contingencies of the buyers have been waived regarding the transaction and they are unable to close escrow, then very well under the purchase contract you are entitled to the deposit. I would make a written demand upon the buyers to close escrow by a set date and if they fail to do so, deem them in breach allowing you to keep the deposit.
I would consult with a real estate attorney further on your issue. Good luck.
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