Is my earnest money refundable?
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Is my earnest money refundable?
My homebuilder has just told me that it will be an additional 6 months before my
home is completed because of other projects that will be completed first. There
was no timeline listed in the sales contract. Our financing has not been
finalized and we understood that our earnest money was refundable until the
financing was complete. They will not return my $3000.
Asked on October 17, 2018 under Real Estate Law, Utah
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
It is refundable in the event of:
1) Breach of contract, or violation by the builder of some material or important term of the contract. But if there was no completion, etc. date in the sales contact, it may be hard to show this--without a specified date, how can you show that these delays are violating the agreement.
2) Fraud, or some misrepresentation (lie) made to you to induce or cause you to enter into the transaction. If you believe that they lied about whether or when they would build you a home, you could sue them based on fraud to void (undo) the transaction and get your money back.
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