Buffalo, NY asked in Real Estate Law for New York

Q: Can the sellers of a property keep a good faith payment even if the morgage was canceled through no fault of the buyer

My husband and I placed a $2500 good faith payment on a property we placed a bid on. Our realtor and morgage company said we had to do this. Then the morgage company, after 6 weeks of back and forth and the payment was made. They said they would not hold the morgage. Now the sellers want to keep the good faith payment. It was no fault of ours that the deal fell through, how can they keep the money?

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1 Lawyer Answer
Barry E. Janay
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Answered
  • Livingston, NJ
  • Licensed in New York

A: A lot of what you've written doesn't make sense. Typically a deposit is put in escrow and the contract determines under what conditions or circumstances it may be returned.

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