Please watch Part 1 – “Is a Buyer’s Earnest Money Safe If He / She Terminates on a Financing Contingency?” .
When a Buyer terminates a Purchase & Sale Agreement based on not meeting the Financing Contingency Exhibit, is the Buyer’s Earnest Money safe? Well….. it depends! Which contract form were the parties Binding Under – GAR or RE Forms? Did the Buyer Send the Loan Denial Letter from the Lender? WHEN did the Buyer send the Loan Denial Letter? What Lender was the Loan Denial letter from? What was the reason that the loan was denied? What were the terms of the loan that was denied? These are ALL factors which must be addressed in order to determine if a Buyer actually meets or does not meet the Financing Contingency in a Purchase & Sale Agreement for real property in Georgia.