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Earnest Money

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2 1/2 months ago, signed a purchase agreement for a new townhome...we have given $3825 in earnest money to date. Contract has financing contingency. Since pre-approval my husband was laid off from his job. We spoke to builder, indicated that we would not be able to qualify for the mortgage as things stand...closing is not expected until February...no choices have even been made...they have not even broken ground for the home. The builder refused to return earnest money (claiming liquidated damages) and will not consider any option except our continuing with purchase or losing earnest money paid to date...any opinions, suggestions, etc. would be appreciated.

[Edited by katarinam on 06-08-2001 at 07:40 PM]


Senior Member
You need to have an attorney review your purchase contract. If the purchase was subject to financing you have an out.

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