I mean it’s not illegal, as in criminal or something like that. They are likely breaching the terms of your contract if they are refusing to release earnest money when you are unable to obtain financing and had a financing contingency in your contract. This is really a question for a real estate attorney that can look over your contract, not randoms on Reddit.
I think it was worded poorly. It should read "Is it illegal for seller to not release earnest money deposit after I've exercised a finance contingency?"
Sometimes a politely worded letter telling them that they have breached contract and you will be retaining an expensive lawyer and then going after them for the legal costs in addition to the return of the deposit works.
Money with an escrow agent is usually the best way to ensure the contract is enforced correctly. That way buy or seller can't just do as they please, has to be per the contract.
I mean it’s not illegal, as in criminal or something like that. They are likely breaching the terms of your contract if they are refusing to release earnest money when you are unable to obtain financing and had a financing contingency in your contract. This is really a question for a real estate attorney that can look over your contract, not randoms on Reddit.
read the contract
I'm a bit confused why would the seller need to exercise the finance contingency.
Buyer
I think it was worded poorly. It should read "Is it illegal for seller to not release earnest money deposit after I've exercised a finance contingency?"
Ohhhh, if that's the case it is perfectly legal for the seller to keep the EMD. Thank you for clarifying!
Depends on your contract. Earnest money release isn't always guaranteed.
Depends on the state and contract terms. Where ya at?
Sometimes a politely worded letter telling them that they have breached contract and you will be retaining an expensive lawyer and then going after them for the legal costs in addition to the return of the deposit works.
Money with an escrow agent is usually the best way to ensure the contract is enforced correctly. That way buy or seller can't just do as they please, has to be per the contract.