What can I do to recover my escrow payment if the house sale didn't close?

Full question:

I was in the process of buying a house. I paid a small amount which should have gone in escrow. We never closed on the house. The company will not give me my $1800 until they sell the house. What recourse do I have?

Answer:

Your options depend on the contract terms and relevant laws regarding earnest money. Generally, if there was no breach of contract, you should be entitled to a refund of your funds. It is unusual for a company to withhold your money unless they have a valid reason based on a breach. You may want to review your contract and consider seeking legal advice.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

If a buyer decides not to close on a home purchase, they may forfeit their earnest money deposit, depending on the contract terms. If the buyer has a valid reason, such as a failure to meet contingencies, they may be entitled to a refund. It's essential to review the purchase agreement for specific conditions that apply.