EARNEST MONEY dispute

[ChrisHouseSale]

What is the name of your state? MISSOURI

The party who intended to buy my home (For Sale By Owner) is now suing me for the full refund of earnest money received by me in the amount of $2,400. I am appearing in small claims court in the next couple of weeks.

At the time of the offer, a written contract (by me) signed by both the seller and the buyer did NOT specify what would happen with the earnest money if the buyer did not close the deal. (The offer was CONTINGENT based on the sale of the seller's home.)

The contract stated that the deal should be closed within 30 days, with an optional additional 30 days if needed. The buyer did opt for another 30 days, and finally, after 60 days, cancelled the deal and demanded the earnest money be refunded.

What does the law state here regarding the earnest money? Refund it or not?

Thanks!

 

[djohnson]

Was it also contingent on financing? Basically depending on who broke the agreement would lose.

 

[JETX]

The buyer did opt for another 30 days, and finally, after 60 days, cancelled the deal and demanded the earnest money be refunded.

And what was the EXACT reason given for the cancellation??? If it was that the buyer was unable to sell his property (and since he had such a contingency), you would have to refund the earnest money and terminate the 'deal'.