Legal Question in Real Estate Law in Maryland

Re: buyer default of contract for commercial property

To protect themselves from an inability to obtain sufficient financing to purchase a property, a buyer must make sure there is a financing contingency clause in the contract. These clauses are found in standard contracts used by realtors who represent buyers in these transactions. The clause says that the settlement is contingent on your obtaining a certain minimum level of financing, usually a percentage of the purchase price geared to the percentage loan you're trying to qualify for. Since a lender will only loan up to a percentage of the appraised value, when that appraisal turns out to be less than the contract price, the loan terms can't be met and the contract is voidable by the buyer. Then you are entitled to a return of your deposit.

If your contract didn't have this clause, you are not entitled to get out of the contract. You can increase your down payment to make up the difference, or look for a higher percentage loan (for example, 90-100% instead of 80%), but otherwise you will be in default. The contract probably contains a default clause that gives the seller several remedies, one of which is forfeiture of the deposit.

It sounds like you got into something you didn't know much about and didn't get professional assistance from either a realtor or an attorney. Now your deposit is in jeopardy, and the only option appears to be to buy the property (assuming it's still available) or forfeit the deposit.