What to do if we signed a contract for purchasing a new home in but due to our situation had did not continue and cancelled the contract 2 months later?

Get Legal Help Today

 Secured with SHA-256 Encryption

What to do if we signed a contract for purchasing a new home in but due to our situation had did not continue and cancelled the contract 2 months later?

This was about 1 1/2 years ago. We had paid the earnest money as part of the contract. We have been contacting the seller for the refund and the seller is not refunding the money back. Is it possible to get the earnest money back in this situation?

Asked on January 7, 2013 under Real Estate Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If you contract to buy a home and then do not go through the purchase, the seller is entitled to keep the earnest money or deposit unless--

1) You cancelled the sale pursuant to some provision in the contract giving you the right to do so--for example, if there had been a finance or inspection contingency, and you properly exercised your right to cancel under that contingency.

2) The seller did something causing the sale to fall through--for example, the seller  was not ready to sell on the closing date.

Other than as the above, however, the seller is entitled to keep the earnest money as compensation for your breach of the contract of sale.


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 with SHA-256 Encryption