About Eric Sexton Expertise All aspects of buying and selling homes including: General real estate questions, Contracts, Negotiations, surveys, title work and general questions about mortgages. I CAN NOT GIVE LEGAL ADVICE AND WILL NOT BE ABLE TO ANSWER QUESTIONS WHERE LEGAL ADVICE IS NECESSARY.
Experience
I have been a real estate agent for 6 years and a broker for 2 years.
Organizations National Association of REALTORS and Texas Association of REALTORS.
Expert: Eric Sexton Date: 9/26/2007 Subject: Earnest Money with Builder
Question Hello, I signed an earnest money contract with a builder. I gave them $4000 as a down payment. They began construction; however, my company shut its doors, and I was forced to accept another job that is 4 times less than what i was originally making. The decrease in income resulted in a denial for the new home purchase. I told the builder my situation, and cxld the loan. They are telling me that they are not going to give my my earnest money back. Can they do this even though I can no longer qualify for the home?
Answer Melissa,
It really depends on the terms of the contract. Builders generally have their own contracts which can vary from builder to builder.
I suggest you consult an attorney. The attorney will help you evaluate the terms of the contract to see what you might be entitled to.
