Q: I’m a consumer selling my house and am under contract for a cash offer which gave 8,000 discount for cash.
After signing they switched to financing. I’ve lost 8,000 and feel so deceived. Is this legal?
A:
Yes, it's legal, and I understand that you're upset because you gave them a discount. However, you haven't actually been harmed.
The purpose of the discount is so that you don't have to take a risk that they won't be approved for financing for some reason. You know you have a deal, whether they get a loan or not. So, if the contract is for cash, it's Not contingent on financing; they'll still have to pay cash to close, whether they get the loan or not. If they close, you're not out anything at all, whether they close with cash or financing. If they don't close, you can probably retain the earnest money. The situation is exactly the same to you no matter where the funds originate.
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