Legal Question in Real Estate Law in Ohio
Forfeiting earnest money
My husband and I were in the process of purchasing a home listed for sale by owner. We neogitiated a price with the seller and then signed a purchase agreement. We also gave the seller a $500 check for earnest money. We had every intention on completing the sale until our mortgage processor informed us that the land in which the property was located was deemed a flood zone. This was not disclosed to us by the seller of the home prior to us signing the purchase agreement and giving $500 for earnest money. When we confronted the seller their response was they did not know the house was in a flood zone.
My question is, without the flood zone information being disclosed to us, is that a valid reason to terminate the contract and if so, are we entitled to receive our $500 in earnest money back? Any information you can supply would be GREATLY appreciated!
1 Answer from Attorneys
Re: Forfeiting earnest money
Dear Prospective Purchasers:
Contracts for the Offer to Purchase and Sale of real property are governed by the terms of the written contract. Accordingly, your Offer, if properly drawn, should entitle you to a refund of all of your earnest money deposit, if you must reject the purchase on the basis of lack of full disclosure, as required by Ohio law.
I'm attaching a copy of one of my Construction Lawletters dealing with "As Is" purchases, just in the event your purchase contract contained such words. If not, and the Seller failed to disclose a material(very material) condition of flooding, your purchase may be withdrawn and you are entitled to your refund, in full.
If the seller still refuses, contact your local Small Claims Court, sue for replevin (refund of your earnest money), and include an additional count of fraud and concealment for $1,000.00 or more and watch how fast they come through with your refund!
Good luck. Sincerely, J. Norman Stark.
I
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
