Who keeps earnest money if a deal falls through?

You may be wondering what happens to your earnest money if a deal falls through! We have the answers you're looking for. Keep reading about "Who keeps earnest money if a deal falls through?" below!

Who keeps earnest money?

In Fort Collins, earnest money is typically held in escrow by a title company or attorney. If the deal falls through due to the buyer's breach of contract, the seller is entitled to keep the earnest money.

However, if the deal falls through due to a contingency that was included in the contract, such as a failed home inspection, the buyer is typically entitled to get their earnest money back.

Here are some common reasons why a real estate deal in Fort Collins might fall through include:

• The buyer or seller changes their mind.

• The buyer or seller is unable to obtain financing.

• The home does not appraise for the agreed-upon price.

• The home inspection reveals major defects.

• The buyer or seller is unable to close on time.

If a deal falls through, it is important to contact your real estate agent to discuss your options. In some cases, you may be able to get your earnest money back. However, if you breached the contract, you may not be able to get your earnest money back.

Here are some tips to help you avoid losing your earnest money in a Fort Collins real estate deal:

• Make sure you understand the terms of the real estate contract before you sign it.

• Be sure to include all of the relevant contingencies in the contract.

• Communicate with your real estate agent and attorney throughout the home buying process.

• Be prepared to close on time.

By following these tips, you can help to protect yourself from losing your earnest money if a real estate deal in Fort Collins falls through.

I hope this is helpful for any buyers out there who are currently on the quest for their dream house. If you are interested in more advice when it comes to buying a home, be sure to check out my other articles on my blog.

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Livingston Home Team, top real estate agents in Fort Collins has all you need to know about our wonderful community. Visit Living with The Livingstons to learn more.

Interested in selling your current home or starting the search for your dream home? Call us today at (970) 556-8833 or book a call at your convenience.