PHOTO FROM 123RF
Are sellers allowed to relist a house when earnest money hasn’t been returned? By Steven Rivkin
T
here are instances where an individual sees a home, is attracted to the home, makes an offer, and luckily the seller accepts the offer. Then few days toward closing arises, a dispute between the seller and the buyer, and closing does not occur. Generally, in such scenarios, the seller is supposed to give back earnest money to the buyer and proceed to relist the home. Earnest money is a percentage of the actual home price that a buyer deposits into the seller’s escrow account to indicate that they are serious about purchasing the home. Otherwise, sellers do not take buyers seriously. Earnest money ranges from 1% to 3%, depending on the real estate market—disputes between the buyer and seller regarding whether a buyer is supposed to get his money back. If a buyer fails to meet the deadline, then the money is not refunded, but if it is not the buyer’s fault, then it is legal for the buyer to be refunded the earnest money. Whether sellers can relist a home depends on why a contract was not closed. However, it is always advisable to consult an attorney general. For instance, if it was the buyer does not meet the deadline terms and conditions and confirms in writing AUGUST 2022 | 111
