Q: Release of Texas Earnest Money Form questions on new construction.
My husband and I are trying to obtain a construction loan through VA in Texas. We signed a contract with a construction company, where we had a 1,000 escrow/earnest money. We're also supposed to pay 5,100 in closing costs. A week ago our agent called us to inform us the builder now wanted a 4,000 earnest money deposit. That's not written in the contract. He gave us an amendment paper for the contract, but the builder's request is written, not printed. It states, "Buyers to deposit an additional 4,000 of earnest money. If buyer fails to close, earnest money will be returned to seller." That sounds awfully vague. In addition, he demands we sign a release of earnest money form. The form seems like an authorization for the builder to obtain the earnest money.
What happens if we decide to not sign the amendment paper? The whole earnest money request sounds fishy.
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