Q: Can a buyer in a real estate deal receive earnest deposit back if conditional financing is ultimately denied .
In the as is contract there is a Loan commitment period and then an option for a second deposit . If the buyer was given a conditional approval on a loan but was ultimately denied , does the buyer have any right to his earnest deposit money back after the loan commitment date has passed and the buyer providing the rest of the earnest deposit .
Buyer was confident in getting approved howeve due to unseen circumstances was unable to clear conditions and denied the Loan .
A: That would depend upon he precise contingency language in the contract.
A:
No way to say for sure without it’s reviewing the contract.
I suggest that you consult with a real estate attorney in your area.
Good luck.
A: An attorney would need to review the contract as it governs. Very generally yes, typically if the denial was outside of buyer's control, as long as they made best efforts to get approved, they get their deposit back.
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