Q: In a Maryland contract, buyer's gift is rescinded by giver prior to closing. Does buyer lose earnest money deposit?
Father is gift giver for real estate contract and decides not to give gift prior closing. Gift addendum and proof of funds in father's account was provided by buyer. Buyer cannot qualify without gift under financing contingency. Does buyer get earnest money deposit back>
A: It is worth your money to have a lawyer review the contracts focusing specifically on the financing contingency, but if the loan was approved subject to the gift, and if the financing contingency was released, then you will breach when you fail to close. Your relationship with your father is not the seller's problem. In some contracts, the damages are limited to the deposit. That is not always the case.
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