Scottsdale, AZ asked in Real Estate Law for Arizona

Q: We were in a contract to buy a home. We had a pre-qual letter when we negotiated the contract. We put up $2000 earnest

The financing fell through now the seller wants the earnest money, does he have a right to it?

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1 Lawyer Answer
Peter H. Westby
Peter H. Westby
  • Scottsdale, AZ
  • Licensed in Arizona

A: Your rights and the sellers' rights are governed by your contract. If you are using the standard form contract commonly used in Maricopa County there is a financing contingency that, in most cases, allows the return of your earnest money where you cannot get financing. But there are many exceptions where this is not true. I recommend reviewing this matter with a real estate attorney. Once your attorney reviews your contract and learns all of the facts he or she will be able to let you know what your legal rights are.

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