return of earnest money - commercial property

[kookaburralaw]

Wisconsin. My ex-wife wanted to buy a building thru her LLC when we were married. I wrote a $2,000 check for earnest money. The purchase contract had a financing contingency with terms and required her to arrange financing and close within 60 days. If financing was not approved the seller had the option of financing the deal himself under the same stated terms which he did not excercise. The sales contract had a bump clause due to her financing contingency. She did not receive a written denial of financing, but knew she could not get financing. Seller kept the earnest money after the 60 days because she did not provide written notice of financing denial.

What are the chances of winning a small claims action to return the earnest money? I don't care if she or I are the plaintiff, she acknowledges the money should go to me.

[pojo2]

Seller kept the earnest money after the 60 days because she did not provide written notice of financing denial.


Chances = none. She did not fulfill the terms of the financing contingency. How did she know she would not get the loan and if she did then did she sign legally binding contracts?

[kookaburralaw]

Wouldn't the seller have to show damages in order to keep the earnest money?

[pojo2]

NOPE! Damages equal the time your wife wasted when the seller could not enter into another contract. Fact is she breached the contract. You WILL ONLY get the EM back if the seller's decides to give it to you.

Anyone can file a small claims case but you will not win this one.

[HomeGuru]

Originally Posted by kookaburralaw

Wisconsin. My ex-wife wanted to buy a building thru her LLC when we were married. I wrote a $2,000 check for earnest money. The purchase contract had a financing contingency with terms and required her to arrange financing and close within 60 days. If financing was not approved the seller had the option of financing the deal himself under the same stated terms which he did not excercise. The sales contract had a bump clause due to her financing contingency. She did not receive a written denial of financing, but knew she could not get financing. Seller kept the earnest money after the 60 days because she did not provide written notice of financing denial.

What are the chances of winning a small claims action to return the earnest money? I don't care if she or I are the plaintiff, she acknowledges the money should go to me.

**A: why did she not provide the financing denial letter?

[kookaburralaw]

Originally Posted by HomeGuru

**A: why did she not provide the financing denial letter?

After entering into the purchase contract she lost her down payment and her business failed. Since she knew she could not get financing, her attitude was, "why bother".

[pojo2]

Wasn't her 2K, right?

What on earth possesses either of you to believe a return of the EM is even in order given her attitude?