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Feldspar67

return of earnest $$

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I wondering wondering if anyone has dealt with contingency sales and earnest money situations before...below is a narrative detailing this.....

 

The home (the rental) was initially a contingency sale....a purchase price was agreed to and earnest money was put down ($1,000). The contingency was the sale of the buyers home, and eventually their home sold, and they should have moved toward applying for a loan for the purchase of the house. However, they did not inform us of the sale of their home (I did my period search to their listing agent to be sure, and discovered it sold in June 2016.) I did not discover the sale of their home until mid July 2016, so I call them and they said they would not be able to continue with the purchase due to financial difficulties. According the the state of Mn. earnest is returned to buyers only if they are declined for a loan, or the sale of their home does not occur. The buyers did not show proof of being declined for a loan, only stating they could not afford it, therefore the earnest money should go the the sellers. 

 

In addition, by not informing us to the sale of their home they broke the contingency agreement and held the home hostage during a period of time we could have tried to sell it. This breach should also been a reason why the earnest money come back to the sellers.

 

We lost earnest money and the potential to sell.

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1 hour ago, Feldspar67 said:

The home (the rental) was initially a contingency sale.

 

What exactly does this mean?  Was it a rental or a sale?

 

 

1 hour ago, Feldspar67 said:

a purchase price was agreed to and earnest money was put down ($1,000).

 

Was this money paid by the buyer to the seller (who I assume is you)?

 

 

1 hour ago, Feldspar67 said:

According the the state of Mn. earnest is returned to buyers only if they are declined for a loan, or the sale of their home does not occur.

 

What does "According to the state of Mn" mean?  Did someone at some agency of the state tell you this?  Is there some law you think says this?

 

 

1 hour ago, Feldspar67 said:

by not informing us to the sale of their home they broke the contingency agreement and held the home hostage during a period of time we could have tried to sell it. This breach should also been a reason why the earnest money come back to the sellers.

 

Is this just an expression of your opinion, or is this what the contract said?

 

 

1 hour ago, Feldspar67 said:

We lost earnest money and the potential to sell.

 

How did you lose the earnest money?

 

You didn't ask a question, so I'm not entirely sure what you want to know.  I assume that, at the time of payment of the earnest money, you and the buyer entered into a written contract.  Is that correct?  If so, what did the contract say about the return of the earnest money in the event the sale did not go through?

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