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Updated over 6 years ago on . Most recent reply

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21
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Vincent C.
3
Votes |
21
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Getting earnest money deposit back; cancelled contract

Vincent C.
Posted

So I cancelled an assignment contract with a wholesaler. Closing date with Sept 10, but the title company wasn't able to close on time. They needed a blue dye test, but didn't keep me updated, until I finally asked and they said they had filed it with the wrong department or town. In the interim, I had reflected on potentially shady pattern in my interactions/encounters, I decided to cancel the deal per the contract as the title was not deliverable by the closing date, confirmed by the title company.

How do I get my earnest money deposit back, and when does the title company give it back? 

Most Popular Reply

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1,730
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Jason Hirko
  • Lender
  • San Antonio, TX
1,511
Votes |
1,730
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Jason Hirko
  • Lender
  • San Antonio, TX
Replied

@Vincent C. I would be VERY concerned about this since your contract is presumably with the wholesaler to take the assignment of HIS contract. Did you put your EMD with the title company? Or did you pay it directly to the wholesaler? The EMD language in the A:B contract may not apply to you if you paid a deposit to the wholesaler - it would on your B:C contract in that case. Some wholesalers in my area have 'non-refundable earnest money deposits' paid to the wholesaler when the buyer signs the assignment. This is a just fancy real estate sounding way of saying "fee you ain't getting back"

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