Legal Question in Real Estate Law in Florida
Earnest money Deposit
We put a 1K deposit down on a home for sale by owner. We told her we had our own lender who was getting us a loan, the contract was contingent on us getting financing at ''the prevailing interest rate'' We stressed we could not afford the home at high interest. She said she had her own lender who could get ''anybody financed'' at low rates.
Two days after the signing we found out from our lender and hers that we couldn't get the loan we needed. We called and told her we could not do the deal and wanted our deposit back, she did not call us for 8 days despite repeated calls to her ''office''
She waited til 5:10 the date the closing was to have been by, and said we breeched the contract for not trying to get financing with her lender.Also said we missed the closing! There was never a closing set!We
sent a final demand letter and also a letter from my lender proving I could not get acceptable financing. No response. I have emails between me and friends talking about getting a house but it had to be low interest to be affordable, I have cell phone records showing I called the seller 20 times in 8 days. Do I have a chance in small claims court? Or should I just cut my losses here?
2 Answers from Attorneys
Re: Earnest money Deposit
It is qustionable whether your one attempt to obtain a mortgage is sufficient.
Re: Earnest money Deposit
The next time do not give the seller your deposit. The deposit should be held by an escrow agent, not the seller. You may have a shot in small claims court, but your contract may not allow you to file suit in the event of a dispute. You may have to mediate or arbitrate first. Without reviewing the contract and learning more about your case, I am unable to provide any specific advice or meaningful guidance.
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