Asked in Real Estate Law for Michigan

Q: We signed a purchase agreement with no earnest money. We did not qualify for a mortgage. Is agreement over?

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1 Lawyer Answer
Kenneth V Zichi
Kenneth V Zichi
Answered
  • Fowlerville, MI
  • Licensed in Michigan

A: Was the offer contingent on qualifying for a specific mortgage and was that contingency not satisfied? Without actually seeing the terms of the agreement it is impossible to say for sure, but IF it was drafted properly and you didn't qualify for the mortgage, then you MAY be able to call the deal 'dead' whether or not there was earnest money deposited.

PLEASE do not sign any purchase offer without consulting with an attorney representing YOU first. At this point you will most certainly need to hire an attorney to review the paperwork and provide advice on what to do next.

The good news is that shouldn't be too expensive, but the 'bad' news is that if you try to avoid that cost, the problem could snowball and get VERY expensive to unravel. Seek local qualified legal representation ASAP.

--This answer is offered for general information only and does not constitute legal advice. It also does not create an attorney/client relationship. Please seek local legal representation.

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