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Return of earnest money

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eleventh-hour

Guest
I live in Illinois...
We attempted to purchase a property (an estate) and gave the realty company $500 in earnest money. We were denied financing due to insurance issues. The realty company is dragging their feet in returning the money, saying it needed to contact the heirs' lawyer to approve the return of our money. Can we get our earnest money back because we were denied financing, even though this was not specifically stated in the contract we signed?
Thanks...Kim
 


HomeGuru

Senior Member
eleventh-hour said:
I live in Illinois...
We attempted to purchase a property (an estate) and gave the realty company $500 in earnest money. We were denied financing due to insurance issues. The realty company is dragging their feet in returning the money, saying it needed to contact the heirs' lawyer to approve the return of our money. Can we get our earnest money back because we were denied financing, even though this was not specifically stated in the contract we signed?
Thanks...Kim

**A: We have no idea since we do not know the terms and conditions of your contract. If there was no financing contingency, there may be a problem.
 

JETX

Senior Member
If the sales contract clearly had a 'financing contingency' clause and you were unable to obtain financing, then the contract could be voided and your earnest money returned.

If (as you say) the contract did NOT have such a clause, then it is unlikely that the seller would be required to return the money... or even to void the contract. You may be forced to proceed with the purchase anyway. I strongly suggest you take your contract and other documents to an attorney in your area and have him/her look at it to see what can be done... and what your obligations are.
 

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