Legal Question in Real Estate Law in Virginia

Return of Earnest Money

I signed a contract to purchase a condo. The 3-day condo review period has passed. I have not yet settled. In the condo doc, there is a disclosure paragraph stating that the Condo Association has filed a lawsuit for against the developers for structural deficiencies, money if collected which will be used to make repairs.

The Condo's attorneys had a meeting with all the condo owners yesterday to discuss the status of the case. One owner who had read the complaint mentioned how it stated that the defendants had set up these dummy, or shell, companies, and then taken the money out, meaning that even if the association won, there would be no money, and the owners would then have to pay for the repairs.

This would devalue the property. Given this, can I get out of the contract without losing my earnest money?


Asked on 12/04/03, 10:55 am

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Return of Earnest Money

I think not, keeping in mind that what the one

owner alleged at the meeting regarding the dummy or shell companies was just that: an allegation listed in the CA's complaint and yet to be proven in a court of law.

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Answered on 12/04/03, 4:10 pm


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