If the earnest money bounces, can the seller terminate?

Simple steps to avoid earnest money violations | Ohio Association of Realtors

A buyer Buyer 2 submitted an offer for a property on which another buyer Buyer 1 had already made an offer. Buyer 1 provided a post-dated earnest money check which the Seller knew could not be covered at the time it was tendered. The date on the earnest money check has since passed without Buyer 1 being able to cover it.

Either the failure to honor the earnest money check or the failure of Buyer 1 to apply for the loan by the date specified in paragraph 4 a of the Real Estate Commission approved contract form is a breach on the part of Buyer 1, allowing the seller to terminate the contract with Buyer 1 pursuant to paragraph 16 a. However, though the language in the contract makes this conclusion clear, Buyer 1 may assert frivolous claims against the seller.

Depending what happens if earnest money check bounced the belligerence of Buyer 1, it may still be prudent for the Seller to proceed cautiously though the contract with Buyer 1 until it has terminated.

Jon Goodman is a shareholder with Frascona, Joiner, Goodman and Greenstein, P. His practice areas include Real EstateBrokerage LawContractsLand UseLeasingReal Estate TitleAssociation LawBusiness Lawand Finance. Disclaimer — Content is general information only.

Information is not provided as advice for a specific matter, versioning marketing strategy does its publication create an attorney-client relationship.

Laws vary from one state to another. For legal advice on a specific matter, consult an attorney.

Roger Bock Heather Boice Sylvia Brownfield Joseph Adams Cope Ben Daniels David Farus Oliver Frascona Jon Goodman Gregg Greenstein Zac Grey Gary Joiner Janice Louden Cinthia Manzano Jordan May Karen Radakovich Jon Sargent Mike Smeenk Harmon Zuckerman Damien Zumbrennen Articles Products Contracts Addenda Office Policy Brokerage Policy Independent Contractor Agreement Residential Property Management Agreement Residential Lease Agreement Education Seminars Webcasts About About the Firm Newsletters In The News FAQ Contact Home.

Are the mineral rights Included?

Home Buying: Attorney's check to seller bounced - Trulia Voices

What Happens When Someone Dies Without a Will? Overbid Funds from Colorado Foreclosure Sales Who Gets to Claim Child on Taxes After a Divorce? Can I require a pet deposit for all animals?