Legal Question in Real Estate Law in Georgia
refund earnest money
I recently contracted on a condo after seeking a second round of funding, when the 1st mortgage co. I was dealing with withdrew their offer to fund my loan.
The second mortgage company reviewed the deal, agreed to move forward and fund the loan, at which time I re-contracted the same condo unit, and at a lower price then first offered.
With that said, the seller asked in an addendum that I forfeit my $1k earnest money if we did not close on the date agreed to, so I went back to the lender and made them aware of this stipulation, and got their blessing that everything was ''good to close'' on the date in question.
The day before the close the lender put the brakes on, stating there was a problem with the condo questionnaire, and that we could not close.
As you can see, I am now out $1k - so the questions is this: can I seek a claim in small claims from the lender to pay me back my $1k, based on their assurance to me saying we're ''good to close'', which was the only reason I signed the addendum in the first place?
1 Answer from Attorneys
Re: refund earnest money
"Good to close" is far from a binding agreement. You didn't say anything about your actual agreement with the lender, but I suspect you will find in your paperwork that they can withdraw approval until the loan is made. Read the paperwork.
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