Who is entitled to the earnest money if the buyer backs out and the inspections are not performed within 17 days?

Answer by  patti (29325)

The contract determine the disposition of earnest money. If there is language that states a time frame for inspections, and the buyer defaults, earnest money is disbursed per the contract.

Answer by  withluck (1745)

Check the terms of your contract very carefully regarding earnest money. If the buyer simply backs out, usually the earnest money is surrendered to the seller. If there is some circumstances that prevent the buyer from executing the contract than it should be addressed in the paragraph regarding the earnest money and who it should be released to.

Answer by  asdfdadeq (46)

If the buyer backs out of an accepted offer, the seller usually keeps the earnest money. The purpose of earnest money is to signal to the seller that the intent to buy is serious. If they buyer does not do the home inspection in time, that does not equal backing out of the deal.

Answer by  txjd (35)

Usually the purpose of earnest money is to compensate the seller in case the buyer backs out. So unless there is some good reason attributable to the seller or the house, the seller would ordinarily keep the money.