Who Gets the Deposit When Deals Fall Through?  

Who gets the earnest money deposit when a real estate settlement doesn’t go through?  The answer depends on the terms of the contract of purchase and sale and applicable state law.  In general, when the seller fails to do what the contract specifies (deliver good title to real estate that’s in the agreed on condition), the buyer retains the deposit money.  When the buyer fails to settle because of not meeting the terms of the contract, the deposit us usually forfeited to the seller.  Be aware of what your contract says in this regard.  If it doesn't seem fair, negotiate for a change before signing it.

List for Free for 1 Month   Search for Real Estate Properties

<< Back to Real Estate Tips