Without trading the Whole contract, we can’t tell you. Some contracts have additional conditions on the loan contingency.....can’t be used within 7 days of closing, waiver of contingency if not exercised by a certain date, etc. There will also be language about passing the closing date. Do you have an agent’s in this....what are they telling you.

You might want to tell us what state this is in, as state laws will vary greatly on this. Also, does the contract have a paragraph on rhe disposition of emds,? Any paragraph on disputes?

@Alex Sky you are asking about a specific legal situation in CA. I really can't add more than I already have. I will repeat that just because you are legally entitled to the return of the deposit, without a signed release, the holder of the deposit may not want to take on the liability of choosing who is rightfully belongs to. You may need to go to court. I don't know if this is common in CA or not. It is in MD

@Alex Sky it depends on both state law and what the contract says. Keep in mind even if you are legally entitled to the EMD, a broker or title company may choose not release it to you, without a release from the other party. In that situation you need to go to court

Updated over 7 years ago on 10/07/2018. Most recent reply presented by

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Alex SkyPoster

Tax, SDIRAs & Cost Segregation

Who keeps the EMD???

Alex SkyPoster

Posted October 06, 2018 20:47

Hello, Who would keep the EMD in this residential real estate scenario? Here’s the sequence of events: - all buyer contingencies EXCEPT Loan contingency were removed - Loan CR removal date was 9/21, buyer didn’t remove - seller sends buyer a notice to buyer to preform to remove the loan contingency on 9/25 - contingency wasn’t removed - COE DATE SET to 10/01 - On 10/03 buyer sends cancellation of contract pursuant to not being denied for a loan - On 10/03 but after the delivery of the cancellation of contract, the seller sends a demand to close set for 10/08 Who keeps the EMD? ** The contingency was never removed and cancellation of escrow was sent by buyer before the demand to close was sent by selIer.

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