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Updated 8 months ago on .
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HELP? End-buyer backed out of assignment
Hi, hoping someone can help answer this challenge...(am I still on the hook or is the end-buyer?)
I'd gotten an on-market property under contract, but I found out it had massive foundation issues so I decided to assign it. (I never gave EMD as the listing agent didn't demand it)
A wholesaler that I know did a JV with me and brought in an end buyer, (I have a fully-executed assignment agreement stating non-refundable EMD due, etc)
However the end buyer didn't deposit and wanted to walk away, this is after the inspection period ended.
Title agent says the end buyer is the one on the hook for the EMD, but if he's not responding to them and doesn't forfeit the EMD, does it somehow fall back on me?
Any help (or referral to a RE attorney would be appreciated)
Thanks!
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- Residential Real Estate Investor
- Kansas City, MO
- 5,004
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Looks like you're right. I guess I had just heard that several times before but when actually looking into it, like here: https://www.creuniversity.com/articles/earnest-money-vs-lega..., earnest money is a form of consideration but just the offer to purchase is also. Thanks for correcting me on that.