Earnest Money

Good morning.

Would like to ask if ever, refundable ba yung earnest money? We were the sellers, supposedly, we were targeting an x amount of appraised value then bank only approved up to a certain amount. The buyers are insisting to give them the full refund of the earnest money because of this, and is now threatening estafa? Is there a ground for this? And can they refund the full amount in the first place? We are already agreeing to return at the maximum 50% of their earnest money but the buyers are still insisting on a full refund.

Thanks

desperado,

first,check if your written contract says something about the earnest money.

if there is none, then legally, his payment and your receipt of the earnest money mean both of you are bound to do what is in the contract, that is to finish the sale. earnest money is considered part of the purchase price. thus, it is usually non-refundable.

now, if either or both of you are backing out from the contract effectively rescinding the contract, then both of you have to restitute-or give back what has been given and received.

if there is fraud, then there may be estafa, which is criminal. otherwise, it is just a breach of contract, which is civil or just payment of money.

For more free legal information about the matter, you may visit www.domingo-law.com

Hi.

When will there be grounds for fraud?