Legal Question in Real Estate Law in Illinois

Earnest Money

I signed a contract NOT contingent on selling my home because I thought my house was sold...It fell through so I wasn't approved for my loan. The seller wants the 4,000.00 earnest money and they are taking me to mandatory arbitration and are trying to get 3800.00 for differnce in sales price, 1,500 for taxes, 5,140 for interest, 750 for interest on line of credit and attorney fees. Well they get this other money or well they only get the earnest money. I had EVERY intention of buying the house and even had 2 inspections! Why are they taking me to court and how likely will they get rewarded the money?


Asked on 9/06/08, 10:52 pm

1 Answer from Attorneys
Walter Palmer Law Office of Walter Palmer

Re: Earnest Money

Bad News

A contract is a contract is a contract. You didn't have the contingent/escape clause, so you made a firm deal and how you financed the purchase was up to you.

They are likely to at least get the earnest money. That is pretty much what the earnest money is for, because they took the house off the house off the market and lost the possibility of other sales during the time that your loan was falling through.

How much of the rest they get is up to the arbitrator. I would guess that legal fees are likely. The rest, I'm not so sure of.

I would advise against hiring an attorney because then you might very well have to pay your fees and their fees. If you feel that you would come out ahead by hiring an attorney over all, feel free to do so.

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Answered on 9/07/08, 5:51 am


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