Hi gurus. Here's the scenario. Buyer paid 5% ernest deposit to seller. Then seller prepare S&P agreement which has aggressive clauses like, must settle payment within a month of discharge, after which it incurs interest for the second month, and if not fully settled by 3rd month then all is forfeited. Seller keeps deposit.

Now buyer is taking bank loan. No guarantee by bank on disbursement schedule. Also, property valuation is lower than selling price, so cannot take higher loan also...

If buyer and seller don't agree on sale and purchase terms, then can the buyer get the deposit back?

Thanks!

Yes, can get back your earnest deposit because both parties can't agree to sign SPA. Ask your real estate agent to handle it.

Of course can get back due to parties not being able to agree on the terms. My guess is seller not interested to sell as maybe got another offer for higher price or the agreed price too low so terms very strict.

If loan rejected, automatically full refund.

Didn't fully capture your contract terms but I can see that the seller will be tough to handle. If like this, I will try to stay away.

Even by taking 5% deposit, that is already overcharging compared to highest agent commission of 3%. Some is only 2%

This post has been edited by thickface: Jul 19 2022, 10:37 AM