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How to get my earnest money back

Discussion in 'Consumer Law, Contracts, Warranties' started by Luis Bauzá, Jun 26, 2022.

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  1. Luis Bauzá

    Luis Bauzá Law Topic Starter New Member

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    Hello,
    We are under contract and interest rates went high 1.75% more over original interest, in February this year. We agreed with the lender that if any change in the interest they will call us to try to lock the interest, they di d not do it. The seller is no near completion and we cannot lock the interest that are going to go higher. Banks are saying can get up to 7% in the next few weeks. We would like to know if under this circumstances we can get our money back?

    Closing date was suppose to be on July beginning of August, now may be October. We had to force the seller to tell us that the completion day was moved, they did not disclose this information with us. House payment now is up $800 over the budget and can go over. Bank said they will approve the mortgage loan even with the $800 over budget, we do not know where we are going to get it from. We are renting and we will have to extent the contract to a year loosing more money in the process.

    Thank you
     
  2. adjusterjack

    adjusterjack Super Moderator

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    Whether you can get your earnest money back depends on the terms and conditions of your purchase contract.

    Upload a copy. Redact any identifying information.
     
  3. Luis Bauzá

    Luis Bauzá Law Topic Starter New Member

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    Thank you,
    Here is the contract, We appreciate your time. We tried to upload the file but is to big. It is 22 pages we tried to divided and keep saying file is to big.
     
  4. Luis Bauzá

    Luis Bauzá Law Topic Starter New Member

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    I think we are getting some progress.
     

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  5. Luis Bauzá

    Luis Bauzá Law Topic Starter New Member

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    This is the first part.
     

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  6. Luis Bauzá

    Luis Bauzá Law Topic Starter New Member

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    We apologize for the order.
     

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  7. adjusterjack

    adjusterjack Super Moderator

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    Please understand that I am not a lawyer and I don't give "legal" advice. However, I have spent my life analyzing complex insurance policies and quite a few real estate contracts of my own.

    It's not difficult to see bad news for you in this contract.

    I won't go into detail about Section 3 - Financing because everything about the financing had to have occurred within 45 days of signing the contract, which would have put that by March 18.

    At the end of the financing section there is this:

    upload_2022-6-26_15-26-4.png

    You have agreed to purchase the home for cash if you can't, or won't, take the loan, regardless of the issues with the interest rates.

    As for how long it's taking to complete the construction of the home, Section 8 gives the seller 2 years plus the amount of time any delays caused that were beyond the seller's control.

    upload_2022-6-26_15-30-2.png

    Section 18. If you default, the Seller gets to keep a maximum of 10% of the purchase price. If you have already paid in more than 10% of the purchase price you get the rest of it back.

    upload_2022-6-26_15-38-26.png
    upload_2022-6-26_15-39-5.png

    The remainder of that paragraph explains the concept of liquidated damages.

    Section 19. If the Seller defaults you get your money back plus $500.

    upload_2022-6-26_15-34-43.png

    I'm sure that there is a lot more in the contract in favor of the Seller but the critical parts are those already stated.

    I'm sorry but, unless the Seller defaults, I don't see any way out for you unless you walk away and leave your money behind.

    You might want to have the contract reviewed by a lawyer to see if I missed something.

    Or talk to the seller and see if you can get part of your money back.
     
  8. Luis Bauzá

    Luis Bauzá Law Topic Starter New Member

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    We understand and agree with your remarks. Thank you.
     
  9. zddoodah

    zddoodah Well-Known Member

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    Under contract to do what? Buy a home?

    Completion of what?

    Seems like a reasonable question. However, no one here could possibly answer this question intelligently because no one here has read the contract that you signed (and I'm not going to review a 22 page contract). I suggest you confer with a local attorney.
     
  10. adjusterjack

    adjusterjack Super Moderator

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    Yes. Buy a home.

    smh.

    Construction of the home.

    smh.

    "No one"?

    What am I, chopped liver?

    You're very amusing, Z.
     

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