Legal Question in Real Estate Law in Georgia

Earnest Money

We recently leased/purchased a home here in Georgia. We gave the builder/seller $6196.00 as a security deposit as noted on the LEASE FOR LEASE/PURCHASE AGREEMENT. Under the SPECIAL STIPULATIONS section it states the security deposit of $6196.00 shall be a purchase deposit and is ''NON'' refundable. One the LEASE/PURCHASE AGREEMENT it is called earnest money. The time permitted to obtain a loan is 305 days. We have a loan pre-approval with the an employment stipulation of 18 months. Also subject to financial position & credit rating. With all said, if we are not able to get loan or have enough money to close, can we get our money back. Isn't the buyer entitled to earnest money refund if unable to get financing?

Thank You


Asked on 6/14/03, 11:09 am

1 Answer from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Earnest Money

Without the documents, it is impossible to give an accurate opinion, but it appears as though the documents clearly state it is non-refundable. With respect to whether the buyer is entitled to earnest money back, it depends on the contracts. Here, again, it looks like it says nonrefundable. I suggest reading through all of the provisions of the contracts to see how your specific situation is covered. Most lease/purchase agreements do include non-refundable payments, and that is why it is often a poor deal for buyers.

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Answered on 6/14/03, 11:18 am


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