Do I get to Keep the Earnest Money?

[Novinsld]

What is the name of your state?What is the name of your state? NV
I had buyers come look at my house and later on that night they made an offer. This was over Memorial Day weekend last week. They came to my house just from seeing the sign that is placed on my front yard. They were not represented by anyone other than their friend who is a mortgage lender whom had prequalified them before they came to look. They met with my real estate agent and placed the offer the Sunday the 30th of May. They gave a cashiers check to open the escrow. My husband and I accepted the offer on May 31, 2005. Well now I have heard from my agent that they want to cancel out. She thinks that they have had buyers remorse and they are trying to get their money back. They are saying that they don't qualify for the loan for the home. The mortgage lender is trying quote law and say that they have a three day right of recission. The escrow was opened on June 1st and everything was starting to take place. We were one hour from making an offer on another house because they wanted a 30 day escrow. We were buying boxes to get ready to move. Here we thought the house was sold and I even turned away another potential buyer because of what we had going with these people. I have lost sleep over this ever since this all came about. What are my rights for keeping their deposit? Do they lose the money or a portion of it? Are they protected in the case of buyers remorse? Please help. Thanks!

[JETX]

Originally Posted by Novinsld

What are my rights for keeping their deposit?

Your 'rights' to the money are spelled out in your purchase agreement. If it includes a finance contingency, and they provide a letter from their lender denying the financing, most contracts provide for a cancellation of the contract and return of the earnest money.

So, what EXACTLY does your agreement say as to returning the deposit.

[Novinsld]

Yes there is a financing contingency. It says the rate can not be higher than 6% and the payment cannot be more than $1900. The purchase amount is $324,000. They provided a pre approval letter to my real estate agent though. If they qualified would there be anything else I would have to worry about besides the financing?

[JETX]

Originally Posted by Novinsld

They provided a pre approval letter to my real estate agent though.

The 'pre-approval' letter is very likely NOT a financing committment.

If they qualified would there be anything else I would have to worry about besides the financing?

There are several other 'contingencies' that might apply. The only way to determine whether any of them are in this case, would be to read the entire agreement.
Sounds to me like its time to get a local attorney involved.... or just return their earnest money and get a written termination of the contract.