Legal Question in Real Estate Law in Indiana

offer to purchase

I have a friend who signed an offer to purchase for a home. He was to secure financing per the agreement by 7/10 or loose his earnest money deposit. He made 2 attempts to get a mortgage approval but was unsuccessful; the last turn down was after 7/10. His realtor gave him the name of a broker who did approve him but at a payment he can't afford so he declined the mortgage. This took place after 7/10. His realtor now states she is going to sue him for the purchase price of the home and her commission because he won't close the loan on 7/25. The realtor was representing both the seller and the buyer. What is his recourse or obligation?


Asked on 7/21/06, 11:30 pm

1 Answer from Attorneys
C. David DuMond Law Offices of David DuMond

Re: offer to purchase

The usual custom is to make an offer contigent upon financing. If your offer was not contingent upon financing, then your real estate broker was grossly negligent. So demand a full refund of the earnest money deposit, and say you will file a complaint against the broker (who should not have been representing both sides of the transaction) if your refund is not forthcoming. http://www.in.gov/attorneygeneral/consumer/

Good luck.

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Answered on 7/22/06, 9:21 pm


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