Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. 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.
Wholesaling
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 8 years ago,

User Stats

34
Posts
11
Votes
Ken Yu
  • Flipper/Rehabber
  • Chicago, IL
11
Votes |
34
Posts

Seller wants to keep Earnest Money upon Assignment

Ken Yu
  • Flipper/Rehabber
  • Chicago, IL
Posted

Hello all, 

I had a seller renegotiate these terms in our contract.


"In the event of an notification of assignment of this contract, the Earnest Money becomes non-refundable and will be immediately released to the seller without future obligation. Notification of assignment will be made in writing to the Seller and the Sellers attorney."

I don't think that this clause is necessarily a deal-breaker (and I could be totally wrong), but I'm taking on a hefty amount of risk in the case where I assign the contract to another investor without my own non-refundable earnest money deposit. 

Since I've never seen a seller negotiate this, I'm looking for advice on how to market this deal to other investors. Would I just market this property for my desired cost minus the earnest money? Are there any legal gotchas that I'm not seeing here? 

Loading replies...