Florida Non refundable earnest money from wholesaler

[Dustin Rose]

Hi all-  I'm in contract on a property in Ocala FL from a wholesaler. I put down a earnest money deposit of $4,000.

After I put down the deposit I found out the home had a prior sinkhole and in talking with local brokers the ARV will be severely affected even though the problem was fixed with underpinning. The wholesaler has said they can't give me my deposit back unless they sell the home to someone else because they have $4,000 of their own earnest money that they will lose on the property of it's not sold. So far they've been unable to sell the property and have lowered the price $10,000. Is there anything I can do to try and get my deposit back or at least lodge a complaint for not disclosing the prior sinkhole before I sent in my deposit? The selling company is a licensed brokerage.

[Brian Garrett]

Originally posted by @Dave Foster:

@Dustin Rose acting as a true wholesaler in FL is actually a felony believe it or not!  While FREC isn't going out of their way to prosecute the gajillion and one of the the wholesalers here that doesn't mean they won't act on something thrown in their lap.  

I wonder if that wholesaler would be as adamant if faced with you turning them in.

Just to clarify you can legally wholesale in FL as long as you are licensed or own the property.