Q: I became aware one day after writing the earnest money check for home purchase that my mortgage terms were not acceptab
High interest and more down payment than stated. Can I get my earnest money back?
A:
Dear Colorado Home Purchaser: If you entered into a "standard" Colorado Residential Purchase Contract, then you should have the following paragraph as part of that Contract:
"4.7.2. Buyer May Terminate. If Buyer is to pay all or any portion of the Purchase Price with Seller or private financing, this Contract is conditional upon Buyer determining whether such financing is satisfactory to the Buyer, including its availability, payments, interest rate, terms, conditions and cost. Buyer has the Right to Terminate under § 25.1...". What this means is that you must notify your Seller (or their Agent) that your private financing has failed and that you are terminating the contract under the "financing condition of section 4.7.2". Be sure you follow the proper protocols for terminating the Contract.
JIM GREER is an attorney licensed to practice in CO and CA and has specialized in real estate transactions for the past 30 years; nothing herein shall be construed as the offering of legal advice insofar as Mr. Greer is not in an attorney-client capacity with the inquiring party.
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