THE PATHWAY TO SELLING:
WHAT CAN CAUSE THE TRANSACTION TO FAIL?
At any time, if the Buyer and Seller cannot come to terms on the sale.
-Buyer fails to deposit earnest money
-Buyer’s failure to qualify for a mortgage (e.g., sudden loss of job)
The home does not appraise at the offer price, and not sufficient reconciliation by the Buyer and Seller.
The Buyer simply decides to walk away from the deal.
-Buyer can walk away from the deal at any time. They may forfeit their earnest money if they don’t meet certain conditions.
When does a Buyer forfeit earnest money? (click to answer)
A Buyer can almost always get their earnest money back during the Seller’s Disclosure review period and Physical Inspection period. After that, typically, they can only get their earnest money back if they unexpectedly cannot qualify for their mortgage (a job loss, for instance).
Who will get the money if the Buyer’s earnest money is forfeited? (click to answer)
Typically, 100% to the seller.