Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 6 years ago on . Most recent reply

User Stats

7
Posts
2
Votes
Anthony Hale
  • Los Angeles
2
Votes |
7
Posts

Earnest Money Dispute

Anthony Hale
  • Los Angeles
Posted

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.

Most Popular Reply

User Stats

42,811
Posts
63,111
Votes
Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
63,111
Votes |
42,811
Posts
Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
Replied
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.

business profile image
JLH Capital Partners

Loading replies...