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Answers (21)
- Earlene Lash
- Contributions:76
If your inspection came in with major issues that require repair and the seller is unwilling to make them or if your lender hasn't approved you for the amount of loan you applied for.
- Metro Indy Expert.
- Contributions:197
Normally only the inspection or a financing issue allows you a way out.
- SJ HomeBuyers, "sjhomebuyersllc"
- Contributions:6
no where near a professional. I was just asking the question. I will of course risk the earnest money, i am only trying to get started and was curious what the furthest i could stretch was. "just in case" i couldnt find a buyer for my deal. Everyone else thanks for the helpful replies. Mark.. not so much
- Mark LeMenager
- Contributions:1716
Excuse me? You area professional flipper and you'd like our advice on how to work the system? Isn't is just an expenses of your way of doing business?
- Darrell Covert, "DarrellRealtor"
- Contributions:1
The answer is maybe. It depends on the State in which the transaction is being carried out, but earnest money is generally returned, if there is a failure to close the contract and it is out of your control. Example: You have gone through the inspection process and you fail to qualify, or the title is clouded and title insurance can't be given to cover your loan. In the State of Az, if you don't have the money to close, that isn't not considered to be not qualified, but a lack of disclosure on your part to perform.
Darrell, J. Covert, CRS, RECS, SFR. e-Pro
Darrell, J. Covert, CRS, RECS, SFR. e-Pro
- John Stewart, "nwhome.us"
- Contributions:2166
The feasibilty should be in your MLS library of forms and can be used on any property type. If you don't have access to the library, get an attorney to find one for you.
It simply gives the buyer an opportunity to find out whether its (the property's) intended use is possible.
The duration is up to your negotiation skills. I think that the default in our form is 10 days, but you won't find a developer who would do less than 30 days. Sometimes they get extended a number of times; it all depends on how desperate the seller is to have an offer on the table.
It simply gives the buyer an opportunity to find out whether its (the property's) intended use is possible.
The duration is up to your negotiation skills. I think that the default in our form is 10 days, but you won't find a developer who would do less than 30 days. Sometimes they get extended a number of times; it all depends on how desperate the seller is to have an offer on the table.
- SJ HomeBuyers, "sjhomebuyersllc"
- Contributions:6
what if i am only making residential purchases?
- SJ HomeBuyers, "sjhomebuyersllc"
- Contributions:6
what is a Feasibility Contingency addendum, how do I word it? how long can i put the review period out for?
- John Stewart, "nwhome.us"
- Contributions:2166
Use a Feasibility Contingency addendum and put the review period out as far as possible.
- Michael Levison, "Michael193"
- Contributions:1
As long as you are operating within the contractually agreed upon timelines for contingencies (i.e. 17 days from acceptance in State of CA), and/or have not yet removed your contingencies, then you will not lose your earnest money.
- SJ HomeBuyers, "sjhomebuyersllc"
- Contributions:6
thanks for the response so far. I have not actually made the offer yet, so dont worry. I have done a few wholesale deals in the past but always had a buyer before i began. This time i dont, so i needed to know how to get out if i couldnt find a buyer.
- John Stewart, "nwhome.us"
- Contributions:2166
Carlton Sheets! We can join for free!
- Alex Cortez, "MauiRealEstateSearch"
- Contributions:114
Are you represented by a real estate agent? If so, perhaps that individual would be best person to ask and he/she would have intimate knowledge of the purchase contract in question. Best of luck in your endeavors (wholesaling or not).
- Hamp Yonce, "Zilluminati"
- Contributions:3463
Call Carlton Sheets and ask him.
- John Stewart, "nwhome.us"
- Contributions:2166
Why didn't you use a feasibility study addendum?
Is the agreement in your name, and or assigns?
It sounds as though you've been reading way too many get rich quick books without enough substance.
Is the agreement in your name, and or assigns?
It sounds as though you've been reading way too many get rich quick books without enough substance.
- Michael Emery, "MikeEmery"
- Contributions:7298
If you attempt to cancel a purchase agreement outside of any contingencies (finance, inspection) the least you could lose is your earnest money.
But you could also be sued for non performance on a contract, which might compel you to go through with the purchase or pay damages.
Which is why everyone is urging you to see a lawyer as we can't see what the language is in the contract you have signed.
But you could also be sued for non performance on a contract, which might compel you to go through with the purchase or pay damages.
Which is why everyone is urging you to see a lawyer as we can't see what the language is in the contract you have signed.
- SJ HomeBuyers, "sjhomebuyersllc"
- Contributions:6
I am wholesaling the contract. If i cannot assign the deal within the inspection period, i either have to back out and lose my $1000 earnest or continue trying to find an end buyer and do a double closing right?
- Erika Phelan- Buyers Agent, "Orlando Buyers Agent"
- Contributions:103
You have to read your contract, to see what your inspection period really is or if the seller is required to do anything like provide you with HOA financials or do anything per the contract timeline.
Other than if the seller breeches the contract, or if you withdraw during your inspection period or if you or the property fail to qualify for financing more than likely you would forefit your earnest money.
Both the buyer and seller have responsibilities under the contract and reason there is a buyers earnest money deposit it to make sure the buyer fulfills the obligations that they agreed to.
Erika in Orlando
Other than if the seller breeches the contract, or if you withdraw during your inspection period or if you or the property fail to qualify for financing more than likely you would forefit your earnest money.
Both the buyer and seller have responsibilities under the contract and reason there is a buyers earnest money deposit it to make sure the buyer fulfills the obligations that they agreed to.
Erika in Orlando
- Enrique Tejera, "DockEstates"
- Contributions:243
Consult with a real estate lawyer as soon as possible. The lawyer will read your contract and advice you as to the options that you have. Real estate contracts are complicated and there are many different ways to write the contract.
Time is of the essence, if you need to back out of a contract consult a lawyer quickly.
Time is of the essence, if you need to back out of a contract consult a lawyer quickly.
- John Stewart, "nwhome.us"
- Contributions:2166
It is very important to sit down and read your purchase and sale agreement, by yourself, in every detail. They aren't actually that challanging to read. Mark the places where you have questions about what you are reading and then get answers to those questions from your agent or an attorney.
In some cases it is as easy as pointing out to the seller that either you or they didn't initial one page of the agreement. There are far too many possibilities for us to address in this forum.
In some cases it is as easy as pointing out to the seller that either you or they didn't initial one page of the agreement. There are far too many possibilities for us to address in this forum.
- Tracy Larkins, "Cobalt Financial"
- Contributions:649
Here's a couple reasons you can back out: If your financing falls through or there are repairs needed and seller refuses to repair or cover cost of repairs... Hope this helps!
when can i back out of a purchase contract and not lose my earnest money?
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