Depends on your state, and your contract. Here in tx we use option periods, where buyers can pay a very small fee, 25.00-100.00 usually, for a 10 day unrestricted right to terminate and receive earnest money back. Normally inspections are done and repairs negotiated during this time. Read your contract to see how it is handled.

But if you tried to push it, buyer could just do an inspection, and terminate if anything is found wrong. Or to have lender turn them down under financing contingency.

Sounds like you might be screwed.

Hmm. I see your point. Thank you for commenting.

Read your contract. Just what does it say? Did you take the house off the market for any period after the contract was signed? As far as the inspection goes, let them pay for it, and then back out as per the contract. But just because they changed their minds... no.

Given the buyer's behavior, you don't want to sell them your house. They would back out on any excuse. Then, they will either complain or sue you later. This is a person who either ignorant or can't assume any risk. Every purchase has risk. Be glad they aren't wasting your time any further. Think how pissed you would be if the moving truck was loaded and you had made plans for the proceeds. Move forward. There is another buyer wanting the house. You just need to find them.

I have to agree with the above. Talk to the neighbor and find out if there really IS a sewer issue. I'd want peace of mind about that one.

Thanks for all your comments. We did talk with the neighbor and they get water in their basement but it is totally unrelated to our house. We weren't damged in the day and a half under contract except we already spent about 300$ in very minor bogus repairs she requested happen. I felt that she should at least hold her end of the bargain and let go of the Ernest money or see the inspection through but whatever. That's what a decent person would have done. Don't put in an offer if you aren't serious. It is no harm to us and I am glad to be out of it sooner rather than later. It's not worth the fight I just wondered if I was wrong to think she should loose the money. It's a business contract. Thanks again. Contract is null, she's out Ernest money and all. Oh well better luck 3rd time around :)

I had the same issue in Ca several years ago, and did threaten a lawsuit. This woman asked to look at the home numerous times(5), before making an offer, and I always accommodated her request immediately. With ernest money of $100K, how could she *not* be serious about buying the house? Her RE agent also told me it was the biggest decision she had ever made on her own(recently divorced older woman)and she had witnessed her indecisiveness in the month she had been working with her. Hopefully this won't happen again to you again, but if it isn't against RE protocol, maybe your agent should mention it to anyone else making an offer to make them think twice, and not waste your time?? Just a thought......

In my experience, your realtor will put you under a lot of pressure to return the earnest money, unless the situation is really outrageous. They just don't want to deal with the hassle or possible legal issues.

But if it's any comfort, it doesn't necessarily get better after inspection, where the report can become a wish list used to renegotiate the contract. And even if you give the buyers everything they want, they still might back out, or otherwise fail to perform. So in a way getting rid of a buyer who isn't really committed is a blessing in disguise.

Your only real advantage is the hotness of your market-- if it favors sellers, you should be able to get another buyer in contract quickly, and that knowledge puts pressure on all buyers. But the fact that this buyer feels able to back out on a very flimsy excuse tells me your market likely isn't flaming hot. So forget this last buyer, and focus on the prospects going forward-- only you can decide if it's worthwhile to keep marketing the property, or take it off, if you can, and wait for better selling conditions.

Scone911- I disagree. Realtors are under pressure (your term), to abide by what the contract says. Depending on the state, contracts can vary. Here in tx, using an option period with the unrestricted right to terminate for around 7-10 days (time period is negotiable) is common.

I absolutely hold contract signers responsible for abiding by the contract. But not because I just don't want the hassle of a lawsuit...it's because I don't want my clients sued in a case where they would lose.

Yep, when in doubt, read the contract. Chances are the answers are all in there.

Just curious. How much do people put down as earnest money today? What surprised me was the post above where the buyer put up 100K.

In every real estate transaction I've been involved in (since my first one in 1973) as a buyer and seller the buyer would write a $1,000 check when signing the contract. All other money would transfer at the closing.

I noticed that too. Idk, maybe depends on the state. Our realtor said that in MN the laws favor the buyer, who almost always gets their money back, and that ppl as a result only offer token amounts, as the concept is basically meaningless.

Putting up $100K in earnest money is one way to make an offer stand out in a multiple offer situation. Having more skin in the game is one way to help make an offer stand out (especially if there are cash offers on the table). Happens in desirable neighborhoods in high cost of living areas.

We just bought in PA, and our realtor said that our deposit wasn't due for 5 days after the offer was presented. We had a $5000 deposit and another 10K after 20 days.

Here, in NC, the avg. EMD is about 1% of asking price.

In el paso roughly 1 percent, as well.

Here in Toronto (very hot market) it's closer to 10%. We gave a $60,000 deposit on a $750,000 (very small) home and our agent said it was low.

Lilysmom...that 3 day right of recision is usually only for Refinances and home equity loans on homes, and anything sold door to door. Not cars, homes etc.

Lilysmom...you need to look at the contracts used for your state. They all vary. Many use an inspection period/termination option period. They give an option to terminate, depending on which you have in your contract.

I was in the car business for 12 yrs, in tx, nm, and fl...we often had people think there was a 3 day right of recision on cars. There wasn't for those states, or most if not all states.

You can Google your state for more specific laws on the right of recision. In general, it's only on products bought thru door to door salespeople, or on Refis on a primary residence...not a vacation home/investment property.

Yes, look at your own contract and your OWN state regs. Our state, you can rescind offer in 3 days for no reason whatsoever (and keep earnest). Actually, in our state, there is hardly ever a time you can't keep your earnest. It is ridiculous it is collected at all, imo.

Yeah I hear that 3 day right to rescind all the time and in our state it is only under very specific circumstances can you rescind and it is primarily off site or door to door sales covered.