June 27th, 2007 by Kenric
As predicted the contract on
SLC townhome #2 was cancelled after the appraisal came in lower than the purchase price. My realtor is looking into the issue of the buyer’s earnest money. According to the contract, and most standard contracts, the buyer’s contingencies are inspection and financing. The buyer did not do an inspection, that period had past a long time ago. The financing contingency deadline actually past last week before the appraisal issue came up. They never gave us a letter from the mortgage broker saying that the buyer could not qualify for a mortgage. In addition, the buyer’s realtor gave the reason for canceling the contract as ‘property did not appraise’. The purchase was never contigent on the property appraising so technically they are just canceling the contract. So am I entitled to the earnest money?
Also, remember my tax appeals that I wrote about here and here? Well, I got denied. They said that my taxes were correctly assessed using fair market value of my property.
Posted in Real Estate | 4 Comments »
Stumble it!
Hi Kenric,
If there’s no appraisal contingency and their financing contingency expired, the earnest money is yours. In this type of market, I would never write an offer without an appraisal contingency!
By Asset Gatherer on Jun 27, 2007
Sounds like you have contractual agreement to the money, but I do believe in karma. Was this buyer trying to jerk you around or did he fully intend to purchase the unit? If everything he did was above board, I would refund the money back to him. Its good karma and good for your reputation.
By RealOG on Jun 27, 2007
I’m sort of torn between that. The buyer was slightly unreasonable and did try to add some stuff into latter contracts, hence the 8 addendums. We’ll see what happens.
By Kenric on Jun 29, 2007