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re: Purchase Agreement deposits
Posted on 2/5/24 at 11:33 pm to Billy Blanks
Posted on 2/5/24 at 11:33 pm to Billy Blanks
quote:
What financing type? Some government loans do not allow for deposits.
Dude, you have no idea what you are talking about.
1
Posted on 2/6/24 at 5:07 am to Billy Blanks
quote:
According to your post, you are the deal killer here.
Damn right. You must have missed where I said:
quote:
House was discounted for older roof and HVAC. Post inspection they want them replaced, but at same discounted price.
The question about earnest money/deposits was not predicated on the deal getting closed. It was merely a question to affirm my understanding of common practice.
Posted on 2/6/24 at 7:27 am to dragginass
The seller doesn’t just automatically get the deposit if the buyer backs out. Buyers can get out for “financing” or inspections. The buyer could intentionally manipulate their credit so the financing doesn’t work out. This is why I said earlier, I would look much harder at if they are using a legit lender over the 500-1k deposit.
Posted on 2/6/24 at 7:55 am to LSU1018
quote:
The seller doesn’t just automatically get the deposit if the buyer backs out.
I understand that. I've had to give a deposit back because a buyer's financing fell through just before closing, due to a lawsuit.
In this case, I believe the lack of deposit predicted the type of buyer who ultimately was cash poor and wanted the insane repair request. Meaning, this agents lack of discretion wasted our time. Next offer/contract, I will make sure a deposit is secured.
Posted on 2/6/24 at 8:19 am to Billy Blanks
quote:
You accepted a binding deal on a buyer who were not approved out of the gate?
Buyer had pre approval letter. 1 week before first closing date they asked for extension. I agreed. Agent spoke with their agent etc. Happened a second time. I agreed, agent advised that I shouldn’t but that I’d get their deposit If it happened again. When they still couldn’t close I received deposit and home went back on the market. This was in 2019. The deposit covered my carrying costs for that extra time. I believe the lender who issued the pre approval was either deceived or didn’t do much to verify before issuing the letter.
This post was edited on 2/6/24 at 8:21 am
Posted on 2/6/24 at 8:21 am to TJG210
quote:
What financing type? Some government loans do not allow for deposits.
Dude, you have no idea what you are talking about.
Yes, I do. VA and FHA amenedatory clauses. Get aquainted with them.
Posted on 2/6/24 at 8:29 am to TJG210
quote:
Deposits are paid after inspection phase usually on a resale home. Meaning, getting one wouldn't have mattered.
Real estate laws vary in different states, but in Louisiana the deposit is due no later than 72hrs after a purchase agreement is signed.
With several ways they keep it and in this particular situation, the buyer would have kept it anyway.
Posted on 2/6/24 at 8:31 am to Dawgfanman
quote:
Buyer had pre approval letter. 1 week before first closing date they asked for extension. I agreed. Agent spoke with their agent etc. Happened a second time. I agreed, agent advised that I shouldn’t but that I’d get their deposit If it happened again. When they still couldn’t close I received deposit and home went back on the market. This was in 2019. The deposit covered my carrying costs for that extra time. I believe the lender who issued the pre approval was either deceived or didn’t do much to verify before issuing the letter.
That sucks. National bank?
Posted on 2/6/24 at 8:36 am to Billy Blanks
quote:
Yes, I do. VA and FHA amenedatory clauses. Get aquainted with them.
You’re talking about something entirely different.
Posted on 2/6/24 at 8:38 am to Billy Blanks
quote:
With several ways they keep it and in this particular situation, the buyer would have kept it anyway.
No shite, still reckless for the agent to not demand something.
Posted on 2/6/24 at 8:39 am to Billy Blanks
quote:
That sucks. National bank?
I don’t remember, but the agent said they were “ok” when we took the offer. Second buyer after it went back on market was smooth as silk. 28 days to close I think.
Though I believe he was committing mortgage fraud and intending to use it as a rental. One of the docs during closing was him attesting he’d use it as primary residence.
Posted on 2/6/24 at 2:56 pm to Dawgfanman
quote:
I believe the lender who issued the pre approval was either deceived or didn’t do much to verify before issuing the letter.
Those letters often times don’t mean dick and there are TONS of scenarios that could play out that are either unforeseen or caught everyone unaware. Those “approvals” are often based on limited amounts of info and once a home is under contract the underwriters take a much deeper look into things. Hell someone could do something as innocent as buying furniture for their new house on a credit card that throws their numbers out of whack prior to closing.
Posted on 2/6/24 at 3:43 pm to dragginass
This is not the norm unless dealing with a 1031...file a complaint..the State RE Agency
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