Will earnest money be returned to the buyer?

I would recommend contacting your agent, or a real estate attorney.

The buyer has the unrestricted right to terminate the contract for any reason during the Option Period. Beyond that period it gets "grey". The contract can also be terminated if the house doesn't appraise and other lender issues during the Third Party time period. An attorney should be contacted if it is other than those issues. Hope this has been helpful.

There are several conditions that will provide the buyer with the return of the earnest money and there are also conditions that the buyer MUST follow if he/she are planning to cancel on the sale of the contract.

One of this biggest mistakes a buyer can do...lack of communication, when you write a contract on a home there's a clause that state "time is of the essence". This means as soon as you know you no longer are interested in the property you should let your Realtor know. Most important, be sure you within the time frame agreed upon at the time of creating an agreement with the seller/buyer. This is a binding contract all parties are responsible for their actions.

Hence, the sooner you know about your decision, the better the outcome is for you.

If you still need additional information, its best to speak with a Real Estate Attorney for precise legal information.

Assuming that the buyer has terminated the contract within the option period OR for lack of financing reasons within the days allowed in the Third Party Financing Addendum (when applicable) OR the home did not appraise for the purchase price on the contract, then the earnest money will be refunded to the buyer after both parties (seller and buyer) sign a Release of Earnest Money form and submit it to the title company designated in the contract.

If the terminated during the Option Period, in most cases, yes. After the Option Period, no unless there is a life changing event, or otherwise stated, BUT it is BEST to check the Contract and seek an attorney for advice.

See if the lender can get you a denial or Find a legal way out of the contract.

Only if the buyer cannot obtain financing within the time frame stated on the Third Party Financing Addendum, with notice to the seller.
If a buyer just decides to walk away after their 10 day option period, no, I do not believe they should get their earnest money back. The seller should receive the earnest money.
I also believe there should be some kind of compensation for the REALTOR. The agent has spent time with the buyer, shown houses, negotiated a contract, made contact with each person for the process of the contract. The agent has spent much time, money and representation with the buyer and has fulfilled their duties. Agents should be compensated for the time they have spent with the buyer. An agent has more than earned their income

Hi Mandy,

You're saying "We already ending the OP period". If that's the case and you're still in your option period, then you have an unrestricted right to terminate contract for any reason. If by the time you read this your option period has expired- please speak with your agent and real estate attorney.

All other questions should be answered by your agent, as they depend on what are the terms of your contract. For instance the resale certificate- it doesn't always get delivered during the option period and depends on the HOA and how fast they process it. I would check your contract to determine when was the seller supposed to deliver the resale certificate.

Your agent should be able to answer these questions, as we don't have all of the details of your transaction, and as my colleagues have mentioned, we're not allowed to provide legal advice.
Good luck and best wishes.

Yvonne Chauvin, REALTOR
Better Homes and Gardens Gary Greene Real Estate
yvonnechauvin@yvonnechauvin.com

Hello Mandy,

You can ask but the Sellers may not be required to return it. If you are beyond your option period, you cannot terminate "for any reason" as stated on the contract. Not providing the resale certificate can have some effect (read the contract regarding this and how many days Sellers has to provide to you and what happens if they don't. On Condo contract, pg 1). Lastly, blanks in a Seller Disclosure may not be a reason to "void" a contract.

Try to have your Realtor communicate with the Sellers agent in a professional manner to get where you want to go. A Realtor cannot give legal advice. Always speak to an attorney regarding specific topics.

Mark McNitt
MarkKnowsHouston.com
832-567-4357
Bernstein Realty

Contact the lender or title company and see if they can help since the seller Is technically breached the contract. Unfortunately, not all sellers are easy to work with. With a condo purchase they do have to provide the resale certificate if there is a loan and so the Lender could “deny” the loan if you are still in the finance period.
Good luck. If you need any further assistance please call me at.7132569145
Melinda Gordon
Bernstein Realty

There is a way to get the Ernest Money back but since you are passed the OP then you will have to find a legal way to get out of the contract without you being at fault. This may be done on one of the errors of the Sellers. Maybe they didn't give you something on time and therefore have failed to fulfill there obligations to the contract giving you a way out. You have to be careful as some lines can be blurred when making these decisions. The other way is out could be thru your Financing. Depending on your lender, they may not give you the loan due to certain situations. Talk to your Realtor about your options if he can't help then it may be beneficial talking to an Real Estate Attorney.

Your story has several parts. To answer your question, yes you can ask for EM back however since OP has passed your request may not be granted. Firstly you must have a meeting with your Agent who has your best interest and discuss reasons, options and consequences. Ultimately you will do what’s right for you. In response to the Seller Disclosure and Resale Certificate portion of your story, your Agent can ask that Seller redo the form. Otherwise you will have to rely on the objectivity of an Inspection report and the due diligence of Title Company, this is what they do best and why you pay them. Part of our job as Realtors is to ensure a professional and smooth transaction to the best of our ability and keep our clients from any drama. Since you’ve already formulated that the Seller’s Agent maybe difficult to work with, allow your representative to handle any personality conflicts from here on. Whether the condo is for your home or a business investment and with the help of your supportive Agent, only you will determine whether it’s worth it.

I’ve been a broker for many years, in my opinion if you as a buyer do not feel comfortable about the transaction then it is best to terminate. Remember this is a big investment and it can not be taken lightly. If you are still under your option fee period, you can terminate / cancel your contract for any reason. It must be done before the option period ends. You get your earnest money back but not your option fee. As for the resale certificate and seller’s disclosure, it is best if your realtor document everything. It must be in writing that you are requesting delivery of the resale certificate and that it has not been delivered. If there is sections of the sellers disclosure left blank then your realtor should put in writing any doubts or questions you have pertaining to that section.

Your agent should be able to answer this for you. If you are still in option period, you can opt out for any reason you care to cite. But do it before option period ends. You should get your earnest money back but not your option fee. Good luck.