Q: if a home appraises too low and the bank refuses to finance, and there is a financing contingency, does buyer get es
Seller is a realtor holding escrow hostage in an attempt to get us to be her client after refusing to negotiate sales price after low appraisal ($20,000 too low). First said she would return the money, now claims we are not entitled to it.
A: Your contract rights regarding the escrow money are likely spelled out in the contract. If you don't understand the contract language, consult an attorney.
Bruce Alexander Minnick agrees with this answer
A:
Depending on the contract, you may be able to get the funds returned if the requirements in the loan commitment are not satisfied as they relate to the property. The appraisal falls in that basket of requirements to be satisifed.
But as I said - it depends on what the contract says, and your obligations of notification etc as set forth in the contract.
Bruce Alexander Minnick agrees with this answer
A:
I have only practiced law for 42 years; but I have not ever seen any purchase and sale agreement in any residential real estate transaction that entitled the seller to KEEP any buyer's good faith earnest money deposit if the house did not appraise as high as the buyer expected. Nor have I ever seen any such agreement allow the seller's realtor to keep the buyer's earnest money deposit.
Translation: Both you and the Realtor are advised not to steal the prospective buyer's money.
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