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Updated almost 6 years ago on . Most recent reply
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Earnest Money Dispute
Newbie looking for any helpful insights.
Went under contract for a townhouse in Jacksonville, FL. The contract was clearly stated to be contingent on my ability to get financing.
After we paid for the inspection, we requested an electrical issue with the breaker be repaired, along with a handful of other small issues. He countered with fixing half the issues and we agreed. Total repairs came to $690.
As a self-employed individual moving across the country I was unable to get financing. Now the seller won't release the $1000 in earnest money because he wants me to pay for the repairs even though I'm not buying the property. The earnest money is only $1000, but that's still a lot to me considering I need to save for a bigger down payment in order to qualify for my first property.
Everyone I've talked to says I am obviously correct in not paying for the repairs since that was part of our contract and the contract was contingent on me getting financing. But what steps can I take to get the seller to release the earnest money?
Thanks for any insights.
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- Lender
- Lake Oswego OR Summerlin, NV
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Originally posted by @James Galla:
Get a lawyer.
Good luck
too funny you will spend 2k on a lawyer trying to collect 1k.. Don't get a lawyer that would be foolish frankly.
read your purchase contracts most of them have mandatory mediation.. but even that will cost you 500 to 1000..
what usually happens in these cases .. is the money sits there and then the title company interpleads it with the court..
EM cant be released without mutual consent.. you can try small claims court..
But in reality I deal with this a few times a year.. on the other end.. Buyers flaking out on me last minute without any contractual right to do so.. but wont sign the release. .we always just split the baby down the middle.. offer to let him keep 500. that usually works.
- Jay Hinrichs
- Podcast Guest on Show #222
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