Commerical non-refundable earnest money

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I'm made an offer on my first commercial property. Small condo office space. Sale price is $300K.

I'm looking for financing and my bank says they could need up to 60 days to get financing approved. 45 days to rush, maybe less but it might cost extra for the appraiser to do it faster.

So we asked for 65 days to close, a discounted sale price, with 3% earnest.

The seller came back with a counter price and with 1/2 of the earnest 3% money being non-refundable after 25 days (the inspection period).


I'm not super happy about the non-refundable earnest money portion. If financing doesn't come through and I want to back out, I'll lose it, right? Is this a bad idea?

I understand why they want to do it, but on your first deal this is very risky. There are too many things that could come up that could delay your closing. You may want to speak with a real estate attorney to see how to protect yourself in this contract.

Good Luck! Aaron