Non Refundable EMD (in Multifamily)

[David Braun]

Hi all! I recently lost a deal I was trying hard to get. We were one of the top two offers but we lost it when the other party offered non refundable EMD. I know this is very common, just wondering how to deal with this. I was uncomfortable putting down EMD as this would be the first deal I did on my own (as part of a syndication) and I didn't feel confident enough.

Are there exceptions in which case the "non refundable" money would nevertheless become refundable?? I.e. what's if the Phase 1 discovers a serious environmental issue? Or structural issue discovered.....? I am sure the non refundability clause can be customized but what are the norms with this? How can I feel more comfortable offering non refundable EMD? Thanks!