Legal Question in Real Estate Law in Illinois

What happens to ernest money if deal falls through?

Man Had preapproved loan to buy property.Put up $500. ernest money. On closing day, after I had evicted my tenant because he wanted possesion at closing, bank deal fell through. Now I am out rent also fees for inspections done. He wants money released. What should I do???


Asked on 9/14/05, 8:03 pm

1 Answer from Attorneys
Thomas Moens Moens Law Offices, Chartered

Re: What happens to ernest money if deal falls through?

You should, or course, consult a real estate attorney to review your contract. Based on the facts you present, the earnest money probably goes back to the buyer. This assumes that the contract was contingent on the buyer obtaining financing, and the buyer made reasonable efforts to obtain financing, and financing was ultimately denied.

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Answered on 9/15/05, 8:57 am


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