Buyer losing an earnest money deposit - how does it work?

[Anonymous]

Anonymous wrote:Even though that is what the contract says, I don't think it actually works that way. We had a similar situation and our realtor said that we wouldn't get to keep their deposit. We moved on and found a new buyer. Not sure if it wasn't worth the hastle for us or our realtor.

Then what’s the point of the EMD?

[Anonymous]

Anonymous wrote:A few things to consider: is this your first time selling a house?

you will undoubtedly go to settlement with this buyer before the next buyer who goes under contract, who may also have issues and need an addendum.

The buyer still wants to buy the house, why are you so inpatient? I’m sure the buyer also wants this to be over.

If you terminate the contract because you won’t sign an addendum and the buyer presents you with one, is operating in good faith, and is working as quickly as possible to resolve lender issues, I doubt this qualifies to entitle you to the earnest money deposit. And frankly, it shouldn’t. You’re being a PITA.

+1. You don't get to keep the earnest money because of delays. Don't let your greed cut off your nose despite your face.

[Anonymous]

Who is holding the EMD? Title company or Broker?

[Anonymous]

Anonymous wrote:Who is holding the EMD? Title company or Broker?

Title company always holds it. Way too much liability for brokers to do it

[Anonymous]

The money is held in escrow by the title company. If there is a despute and both the buyer and seller believe that they should get the EMD, the title company holds the money until an agreement is signed by both parties or a court order settled the dispute. It is almost always returned to the buyer because the seller cannot put the house back on the market or sell it to anyone else until the escrow is cleared and the title is once again clean. You can keep the money but then you may have to wait months or even longer to sell if the buyer disputes the claim.

[Anonymous]

Anonymous wrote:

Anonymous wrote:A few things to consider: is this your first time selling a house?

you will undoubtedly go to settlement with this buyer before the next buyer who goes under contract, who may also have issues and need an addendum.

The buyer still wants to buy the house, why are you so inpatient? I’m sure the buyer also wants this to be over.

If you terminate the contract because you won’t sign an addendum and the buyer presents you with one, is operating in good faith, and is working as quickly as possible to resolve lender issues, I doubt this qualifies to entitle you to the earnest money deposit. And frankly, it shouldn’t. You’re being a PITA.

+1. You don't get to keep the earnest money because of delays. Don't let your greed cut off your nose despite your face.

What? The EMD is so that the seller knows a buyer isn't wasting the seller's time. A delay is one thing. Multiple delays because the buyer can't get their shit together (while the seller still pays taxes, insurance, homeowner fees, etc) is being a PITA. If you're not ready to buy, then that's fine. Don't waste a seller's time.

[Anonymous]

Generally you return it anyway, as any action on the deposit prevents the home from being sold. And proving harm is difficult. Maybe try to negotiate a release where you keep a few hundred dollars for your inconvenience?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A few things to consider: is this your first time selling a house?

you will undoubtedly go to settlement with this buyer before the next buyer who goes under contract, who may also have issues and need an addendum.

The buyer still wants to buy the house, why are you so inpatient? I’m sure the buyer also wants this to be over.

If you terminate the contract because you won’t sign an addendum and the buyer presents you with one, is operating in good faith, and is working as quickly as possible to resolve lender issues, I doubt this qualifies to entitle you to the earnest money deposit. And frankly, it shouldn’t. You’re being a PITA.

+1. You don't get to keep the earnest money because of delays. Don't let your greed cut off your nose despite your face.

What? The EMD is so that the seller knows a buyer isn't wasting the seller's time. A delay is one thing. Multiple delays because the buyer can't get their shit together (while the seller still pays taxes, insurance, homeowner fees, etc) is being a PITA. If you're not ready to buy, then that's fine. Don't waste a seller's time.

A dispute over EMD with the buyer can tie you up in court for months and cause a longer delay. This is fine if you didn’t really need or want to sell and there is no harm in waiting for it to resolve. You might win and get to keep the money. But, if you actually want or need to sell your house, return the EMD and move on to the next buyer right away.

[Anonymous]

Anonymous wrote:

Anonymous wrote:A few things to consider: is this your first time selling a house?

you will undoubtedly go to settlement with this buyer before the next buyer who goes under contract, who may also have issues and need an addendum.

The buyer still wants to buy the house, why are you so inpatient? I’m sure the buyer also wants this to be over.

If you terminate the contract because you won’t sign an addendum and the buyer presents you with one, is operating in good faith, and is working as quickly as possible to resolve lender issues, I doubt this qualifies to entitle you to the earnest money deposit. And frankly, it shouldn’t. You’re being a PITA.

+1. You don't get to keep the earnest money because of delays. Don't let your greed cut off your nose despite your face.

They are on the third extension. I assume OP actually needs to sell their house. Refusing a FOURTH extension seems totally reasonable. I would offer half the EMD contingent on immediate release and see what happens.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A few things to consider: is this your first time selling a house?

you will undoubtedly go to settlement with this buyer before the next buyer who goes under contract, who may also have issues and need an addendum.

The buyer still wants to buy the house, why are you so inpatient? I’m sure the buyer also wants this to be over.

If you terminate the contract because you won’t sign an addendum and the buyer presents you with one, is operating in good faith, and is working as quickly as possible to resolve lender issues, I doubt this qualifies to entitle you to the earnest money deposit. And frankly, it shouldn’t. You’re being a PITA.

+1. You don't get to keep the earnest money because of delays. Don't let your greed cut off your nose despite your face.

What? The EMD is so that the seller knows a buyer isn't wasting the seller's time. A delay is one thing. Multiple delays because the buyer can't get their shit together (while the seller still pays taxes, insurance, homeowner fees, etc) is being a PITA. If you're not ready to buy, then that's fine. Don't waste a seller's time.

A dispute over EMD with the buyer can tie you up in court for months and cause a longer delay. This is fine if you didn’t really need or want to sell and there is no harm in waiting for it to resolve. You might win and get to keep the money. But, if you actually want or need to sell your house, return the EMD and move on to the next buyer right away.

Eh. I doubt a buyer that knows they clearly breached the contract is going to put up much of a fight for the EMD. “Give the EMD back” sounds like realtor bullsh*t.

[Anonymous]

Anonymous wrote:

Anonymous wrote:A few things to consider: is this your first time selling a house?

you will undoubtedly go to settlement with this buyer before the next buyer who goes under contract, who may also have issues and need an addendum.

The buyer still wants to buy the house, why are you so inpatient? I’m sure the buyer also wants this to be over.

If you terminate the contract because you won’t sign an addendum and the buyer presents you with one, is operating in good faith, and is working as quickly as possible to resolve lender issues, I doubt this qualifies to entitle you to the earnest money deposit. And frankly, it shouldn’t. You’re being a PITA.

+1. You don't get to keep the earnest money because of delays. Don't let your greed cut off your nose despite your face.

Greed? OP is paying mortgage money every day to cover for the buyer's fraudulent offer.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A few things to consider: is this your first time selling a house?

you will undoubtedly go to settlement with this buyer before the next buyer who goes under contract, who may also have issues and need an addendum.

The buyer still wants to buy the house, why are you so inpatient? I’m sure the buyer also wants this to be over.

If you terminate the contract because you won’t sign an addendum and the buyer presents you with one, is operating in good faith, and is working as quickly as possible to resolve lender issues, I doubt this qualifies to entitle you to the earnest money deposit. And frankly, it shouldn’t. You’re being a PITA.

+1. You don't get to keep the earnest money because of delays. Don't let your greed cut off your nose despite your face.

What? The EMD is so that the seller knows a buyer isn't wasting the seller's time. A delay is one thing. Multiple delays because the buyer can't get their shit together (while the seller still pays taxes, insurance, homeowner fees, etc) is being a PITA. If you're not ready to buy, then that's fine. Don't waste a seller's time.

A dispute over EMD with the buyer can tie you up in court for months and cause a longer delay. This is fine if you didn’t really need or want to sell and there is no harm in waiting for it to resolve. You might win and get to keep the money. But, if you actually want or need to sell your house, return the EMD and move on to the next buyer right away.

Eh. I doubt a buyer that knows they clearly breached the contract is going to put up much of a fight for the EMD. “Give the EMD back” sounds like realtor bullsh*t.

If the problem is the loan, it’s not likely that the buyer is holding things up. Under those circumstances I’d think the buyer would fight not to lose the earnest money. But OP will see.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A few things to consider: is this your first time selling a house?

you will undoubtedly go to settlement with this buyer before the next buyer who goes under contract, who may also have issues and need an addendum.

The buyer still wants to buy the house, why are you so inpatient? I’m sure the buyer also wants this to be over.

If you terminate the contract because you won’t sign an addendum and the buyer presents you with one, is operating in good faith, and is working as quickly as possible to resolve lender issues, I doubt this qualifies to entitle you to the earnest money deposit. And frankly, it shouldn’t. You’re being a PITA.

+1. You don't get to keep the earnest money because of delays. Don't let your greed cut off your nose despite your face.

Greed? OP is paying mortgage money every day to cover for the buyer's fraudulent offer.

OP never said they were paying a mortgage.

[Anonymous]

Anonymous wrote:Don’t they have to sign a release to allow the home to be marketed again? That always comes up here as the reason why the deposit ends up being returned because there is no other incentive for the buyer to sign the release.

This

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A few things to consider: is this your first time selling a house?

you will undoubtedly go to settlement with this buyer before the next buyer who goes under contract, who may also have issues and need an addendum.

The buyer still wants to buy the house, why are you so inpatient? I’m sure the buyer also wants this to be over.

If you terminate the contract because you won’t sign an addendum and the buyer presents you with one, is operating in good faith, and is working as quickly as possible to resolve lender issues, I doubt this qualifies to entitle you to the earnest money deposit. And frankly, it shouldn’t. You’re being a PITA.

+1. You don't get to keep the earnest money because of delays. Don't let your greed cut off your nose despite your face.

Greed? OP is paying mortgage money every day to cover for the buyer's fraudulent offer.

OP never said they were paying a mortgage.

Mortgage or not, owner/seller is paying taxes, insurance, and possibly dues to an association.

If the financing contingency is now waived, I don't understand why an EMD isn't automatically sent to the seller. There are protections in place to prevent buyers from not following through on contracts they sign.

One delay? Ok. 3? Hell no. Why should a buyer get all the leverage?