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earnest money

I am the seller.  I signed the purchase agreement on Mar. 26.  The inspection contingency specifies 10 business days.  Is the last day April 6 or April 10?  My agent will not answer this question.  The buyer did not finish their inspections until April 7, and offered a price that I can't accept.  Can I keep the Earnest Money?

This is in Michigan.

Thank you
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April 07 2012 - Huntington Woods
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Profile picture for user523717
Thanks.  I have not seen the inspection report, only a letter written by the buyer.  I have not lived in the house since 1972, and it is an As Is sale.
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April 08 2012

To be completely sure, you'd need someone to review the contract, ideally a lawyer familiar with real estate law in Michigan. The end result is that if you attempt to keep it, they'll may file suit and win. It all depends on whether the 10 days starts the day you sign it, the day after, and if Good Friday is considered a "business day". Who is holding the money? If it's a title company, ask them, as they may not give it to you anyway. If I were your agent, I would suggest you give it back, a "fuzzy" extra day isn't worth all the potential headache. If they uncovered something wrong with the property, it's possible they may not be able to get financing. If there is a financing contingency, you'd have to give the escrow money back anyway.

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April 08 2012
Profile picture for wetdawgs
When one counts days for these things, the first day is not the day of signing but the next business day.     Therefore, using this approach they had until either the 9th or 10th (depending on whether one counts one of the holiday weekend days as a business day - many government offices don't).   It sounds like they met their obligations.

Therefore, if you don't accept their post inspection proposal and don't wish to counter, it is time  to release their earnest money back to them and put the house back on the market.   Of course, be aware if their inspection uncovered some major issues, you will need to add these to the disclosures for future buyers.
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April 08 2012
Profile picture for user523717
Thanks for all the replies.  Contract states:

Inspections shall be concluded within 10 business days from the date of Seller's acceptance of this agreement. 

I signed the form on March 26th.  To me, that is Mon. Tues Wed. Thur. Fri.

Mon Tues Wed. Thurs. Friday.  Ten business days. 

I have asked my agent at least 5 times when the period ends, and she will not answer me, which makes me think it was the second Friday.

Thanks
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April 08 2012
On some contracts the period starts 3 days after last signature and lasts for the designated days. But it ought to say that in writing it might be called a time reference date.

I missed a detail in your question so the rest of my original response is irrelevant.  Most likely they are within the date 
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April 08 2012
Hi User,

If the purchase agreement states 10 business days it is my opinion that the final date would be April 9th.  Our purchase agreements state that a buyer can do one of three things upon the results of an inspection: 1: satisfied with inspection 2: dissatisfied with inspection and withdrawal of offer. 3: dissatisfied with inspection and seller agrees to make certain repairs or reduce purchase price by a certain amount.  It seems to me that the buyer in this instance is within the proper timeframe and you would not be entitled to keep their earnest money.

Good Luck!!
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April 08 2012
Profile picture for user523717
Thank you, Brian.  Can you tell me if the contingency period starts on Mar. 26th, the day that I signed the agreement?  My belief is that the period ends on April 6th.  The buyers did not get back to me until April 7.

I was not asked to give them an extension.

Thanks
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April 08 2012
Thanks for your question on Zillow!

I am from Pittsburgh and if the buyer fails to meet a contingency the seller and listing broker have the right to the hand money.  It is established in our listing contract how much the seller gets and how much the broker gets.  It is usually %50.

Hope this helped.  Good luck!   
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April 08 2012
 
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