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HELP/FSBO and Earnest money

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rrel99

Guest
I am a Minnesota FSBO who recently signed a purchase agreement with a buyers realtor (signed May 12th). The realtor gave us a copy of the buyer's pre-approval letter and the agreement was contingent on the inspection.

The inspection was scheduled for Thursday morning (May 17th). On Wednesday morning the buyer's realtor called up my husband and faxed him a letter to back out the buyer from the purchase agreement. The realtor claimed that the buyer had traveled to Europe between the time he had been pre-approved and now and no longer has the money for closing (obviously he would have known this prior to signing the purchase agreement and still signed it). Now that the inspection has been completed and, we have not received a copy of the inspection, they are claiming that they are backing out now because of the inspection as they had told us would happen during my husband's discussions with the buyers realtor on Wednesday.

Now we have lost buyer's in the meantime and feel that we should have the right to the earnest money since the purchase agreement was contingent on the inspection and they backed out proir to the inspection.


Are we entitled to the $2000 earnest money? If yes, how do I go about getting that money. We have not signed any papers letting them out of the agreement.
 


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rrel99

Guest
The buyer's wrote the check out to their realtor's company so at this point they have it.
 

HomeGuru

Senior Member
You may be legally entitled but don't count on seeing anything. Move on. You do not want to pay an attorney $4000 to collect $2000.
 

HomeGuru

Senior Member
You may be legally entitled but don't count on seeing anything. Move on. You do not want to pay an attorney $4000 to collect $2000.

And next time demand that the check be given to you payable to your escrow company.
 
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rrel99

Guest
Thanks for the advice. We are thinking about small claims court instead of hiring an attorney. If for nothing else but to at least put our own conscious at ease for 40$.
 

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