Legal Question in Real Estate Law in Illinois

Earnest money

I have bought a condco and have paid the earnest money of 13,000. We had decided to have the closing date on Fri 28th March. But we couldn't meet the closing date cos my lender had to take out my name from my current house and have my brother's name on the house where i am living now. It will take another week or so for the closing now. My question is that is my earnest money at stake if i have not met the closing date?


Asked on 4/02/08, 9:13 am

3 Answers from Attorneys
George Zuganelis Zuganelis & Zuganelis, Attorneys at Law, P.C.

Re: Earnest money

This is a question you should be asking your lawyer. He and the seller's lawyer will have worked out the new date.

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Answered on 4/02/08, 10:18 am
George Zuganelis Zuganelis & Zuganelis, Attorneys at Law, P.C.

Re: Earnest money

This is a question you should be asking your lawyer. He and the seller's lawyer will have worked out the new date.

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Answered on 4/02/08, 10:18 am
Thomas Moens Moens Law Offices, Chartered

Re: Earnest money

Yes, your earnest money is at stake. I agree with the other attorney that you should be talking to your attorney about this, and if you do not have an attorney, hire an experienced real estate attorney TODAY. Not only is your earnest money at stake, I am somewhat worried about the "scheme" your lender has come up with to "help" you. It sounds like your lender is asking you to give your house to your brother. That alone is risky enough. You may also be violating the due on sale clause of the mortgage on your house, which means the full balance on your loan could be called due immediately. You might also have problems with gift tax. Talk to a real estate attorney before you do ANYTHING.

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Answered on 4/02/08, 11:11 am


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