Legal Question in Real Estate Law in California

Is there a limit on how many times a seller can collect the earnest money deposit? Is there ever an excessive amount where it would start to seem suspicious if the seller collects more than once or twice on the same property?


Asked on 11/17/11, 2:57 pm

1 Answer from Attorneys
George Shers Law Offices of Georges H. Shers

There is no set number of times for it to appear suspicious as that is an individual reaction that has no legal meaning. If the buyer defaults and the contract calls for the buyer to forfeit the earnest money to the seller, that can occur as often as it occurs. There is no limit. I have heard of one man who for years has leased single family homes out on a lease to buy program and no one had ever gone through with the purchase so he has always kept the initial "down payment."

Read more
Answered on 11/17/11, 8:05 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in California