Keeping earnest money

[Cory Adams]

I recently was in contract to sell a duplex in TX whereby the buyers failed to close and asked for a 2 month extension.  The contract was as is with no financing contingency.  

The buyer's agent stated that the buyers would be unable to come up with the money for reasons that were not well stated other than, "their bank said they have the money but it could not be freed up for several months."  I did not want to tie the property up for that long but did provide a 30 day extension offer for which I have not heard back.

The extensions has not be accepted and after claiming the earnest money deposit as per the liquidated damages clause the buyers are not agreeing to sign it.

The deposit is only 1,000 which is a lesson in and of itself in that I should have requested a higher earnest money amount.

What would you do in this situation?