Question

In: Finance

A man put up $10,000 as earnest money on a property for sale. The next day,...

A man put up $10,000 as earnest money on a property for sale. The next day, he needed the money back and attempted to cancel his offer. Which of the following is true?

  1. He can get out of the offer because he has a three day right of rescission
  2. The decision would be entirely up to the broker
  3. He can get out of the offer because of the six day right of rescission
  4. He would have to revoke the offer before the seller accepted it

Solutions

Expert Solution

earnest money is the safety deposit to show the commitment in the purchase of the house.

The earnest money is paid when there is a commitment to buy the house and the contract for the same is signed.

(So option d. Is incorrect)

The earnest money is generally non-refundable and it's entirely at the discretion of the seller/broker to give it back.

Right of recession doesn't apply in the current situation.

Answer: The decision would be entirely up to the broker.

jeff jeffy answered 2 years ago
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