Legal Question in Real Estate Law in Arizona

refund of earnest money

We put $5000 down on a new build & were qualified throgh the bulders lender, they switched loan companies & now say we don't qualify & are going to keep our earnest money. can they do that?


Asked on 9/25/07, 3:38 pm

3 Answers from Attorneys
James Jenkins Jenkins Law Center PLC

Re: refund of earnest money

Based upon the limited facts you state, it does not sound right. More facts would have to be known with an examination of all contracts and loan documents. See a real estate attorney.

Best regards,

James D. Jenkins

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Answered on 9/27/07, 10:21 am
Brian Blum Blum Law Office, PLC

Re: refund of earnest money

I would have to see your contract before I could give you any advice on this. My initial consultations are free.

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Answered on 9/25/07, 3:48 pm
Mitchell Roth MW Roth, Professional Law Corporation

Re: refund of earnest money

It is true that one must look at the contract. But, that being said, most States have a public policy against penalties. If you are not in default of the contract, then a liquidated damage provision would not be appropriate. I suggest you consult an attorney on the issue and find out. $5,000 is a lot of money.

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Answered on 9/25/07, 4:20 pm


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