earnest money refund

[Account Closed]

Question for the BP community. What are the conditions that allow a buyer to get their earnest money deposit back during the due diligence period, if they decide to back out of the deal due to issues uncovered during inspection? 

Example: House under contract. Inspection and walk through with contractor reveal significant decay/rot in parts of the subfloor (likely due to a previous bathroom leak). If buyer asks for concessions on price to fix the problem (since it was not known about when the offer was made) and seller refuses, can buyer back out of the deal without losing earnest money?

Any and all advice is appreciated. Thanks in advance.

[Elizabeth Shelby]

In the Florida contracts for sale and purchase, there is an inspection period of up to 15 days, agreed upon at signing by both parties, which begins the day after an executed contract.  During this period the buyer can walk away without giving a reason, without having an inspection.  They can simply change their mind.  If it is not done then and something is discovered later that would prevent the lender providing a mortgage the buyer can terminate the contract by giving written notice to the seller.  In both cases the buyer's earnest money deposit is refundable in full. 

In your case the buyer can terminate the contract due to issues found on the inspection report, the buyer is entitled to a full refund of their earnest money deposit.