Legal Question in Real Estate Law in Missouri

In August 2014, we became interested in the purchase of a small piece of property. $5000.oo cash earnest money was given to the property owners with an verbal agreement that we would be given 60 days to give the remaining amount of asking price. In Oct 2014, we asked for a 30 day extension because of the financing issues. Nov 2014 we were unable to receive financing and had to end the verbal agreement. With many attempts to retrieve the earnest money, they have refused to give it back. Even though this was a verbal agreement, do we have any legal action against them in retrieving what is owed back to us? Even thought there wasn't a contract, I was under the understanding that regardless the earnest money is contingent upon financing.


Asked on 12/22/14, 9:39 am

1 Answer from Attorneys
Anthony Smith LawSmith

Based upon the facts you described, it sounds like you're owed the $5,000 minus the lost profit of any offer that the owner had to turn down, because of waiting for your financing. Or, you might make a claim that you bought the property for $5,000 and let the owner prove that it was just a down payment. Obviously, you know that the lack of documentation hurts any claim you make. What if the owner denies that you ever gave him any cash? Perhaps the seller still wants to sell the property? Perhaps you should continue seeking financing.

Good luck

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Answered on 12/24/14, 6:13 am


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