Will my buyers escrow money be returned when contract is cancelled?

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Will my buyers escrow money be returned when contract is cancelled?

Buyer had a contract and got denied financing due to a condo questionnaire.
Listing agent found another lender that will do it but the lender wanted 25
down and my buyer cannot do that so canceled the contract within our financing
contingency. Seller has not signed the cancelation yet and listing agent says she
found another lender that will do it for 10 down. Buyer does not want to move
forward. Will she receive her escrow money back?

Asked on March 15, 2019 under Real Estate Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

No, she is not entitled to her escrow back, because you cannot get your deposit back if you cancel the contract or are unable (or unwilling) to go through with it (including due to a problem with financing). You can only get the deposit/escrow back if the seller cancelled or could not perform.


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