Can I Keep The Earnest Money If The Deal Falls Through?
By Liz and Bill Spear, RE/MAX Alliance Cincinnati & Dayton suburbs
(RE/MAX Alliance 513.520.5305 www.LizTour.com)
While you'd like for no Cincinnati real estate purchase contracts to fall through, it does happen. Fortunately the failure rate is rather low.And when a deal does fall through, one of the steps to releasing the deal is distributing the earnest money.The earnest money is essentially a deposit made at contract acceptance to show the seller the buyer is serious about the purchase and doesn't plan to abandon the deal. However, the money does still belong to the buyer, and in most cases is applied as a credit when the sale is completed.The earnest money may be held by the broker on either side of the deal as specified by the contract. In most cases if I'm repping the buyer I'm going to recommend our brokerage holds the funds.Why? Just in case the deal does fail it is SLIGHTLY easier to r...