Legal Question in Real Estate Law in Texas

earnest money verbage

''This paragraph is in a p.a. ''If Buyer allocates an outside party to purchase the Property for an amount over the agreed price $2.00 PSF ($298,821) and the outside parties EARNEST MONEY HAS GONE HARD ON THE PROPERTY before or on the 90th day after the effective date of this contract, Buyer shall pay 10% of every dollar over the $2 psf amount delivered by the outside party.'' Could you explain the part about earnest money gone hard. thank you


Asked on 4/19/08, 8:43 am

1 Answer from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: earnest money verbage

It's not very well worded but the term "gone hard" is slang for the expiration of a feasibility or option period when the Seller does not have the right to cancel and receive the earnest money with no questions asked. This sounds like a commercial contract and you may want local counsel to give you advice. My initial telephonic contract reviews run $150, so you should expect to pay a comparable amount elsewhere. Please seek advice if you don't have a broker representing your interests.

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Answered on 4/19/08, 11:31 am


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