Performance Property Real Estate Question

Can You Keep A Home Buyer’s Deposit Money If They Back Out

Q: My wife and I are selling our home. If we sign a contract with a buyer can we keep their deposit money if they back out? Paul, Bergenfield, NJ A: Real estate is done in writing, so my advice is always read the purchase contract before you sign it whether you are a buyer or a seller. A home buyer’s deposit may be refundable or non-refundable. Most standard real estate contracts however contain contingency clauses that may give a buyer room to back out of a contract. The 2 most common contingency clauses that appear in written real estate contracts are 1. A mortgage contingency and 2. an inspection contingency. If, for example, your purchase contract has a mortgage […]

continue reading