Seller not returning earnest money

In many situations like this, although contract termination is the sticking point, the main issue for buyers is simply getting their earnest money back. In light of this, here are a few things you can do to help make earnest money less of an issue whenever a seller refuses to acknowledge contract termination. None of these alternatives are ideal, but they at least give your buyer some options to consider other than suing. Put up no earnest money. Put up earnest money deposits in stages. This is slightly more attractive to a seller.

A different earnest money holder. The buyer might receive some comfort from having the earnest money held by someone aligned with the buyer. A friendly earnest money holder decreases the chance of an inadvertent or intentional release of the earnest money to the wrong side.

Again, contracts do not enforce themselves.

Home Buying: The seller is not returning the earnest money. (no contract signed- signed only the offer letter). - Trulia Voices

Sometimes parties who are clearly in the right find they have no choice but to file a lawsuit to enforce the terms of the contract. By sharing some of these other ideas with buyers, you might be able to take steps to reduce some of the risks and avoid full-blown legal fights over earnest money.

His practice areas include real estate, real estate finance, and broker representation. He can be reached at jon frascona.

Home Buying: The seller is not returning the earnest money. (no contract signed- signed only the offer letter). - Trulia Voices

Earnest Money Battles These options may help buyers and sellers avoid lawsuits over contract breaches. September By Jonathan A. About the Author Jonathan A.

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