Be careful and don’t allow your clients to loose their earnest money! Banks addendums have precedence over the standard contract forms so be sure if your contract allows for a due diligence period before all terms binding that you don’t have your clients sign addendums waiving that right.
I am in the process of documenting the series of events with the hope that my clients earnest money is returned. We met all terms of the agreement and conducted the home inspection in a timely manner. Because of the agreed FHA contract, certain repairs were required.
When the client decided to terminate the transaction and request the return of the earnest money, we were informed the bank would not return the money because the due diligence period was waived in their addendums – even though this was not our understanding and was communicated prior to signing the addendums.
The moral of the story is – they got the money, the house and they get to sell it again…and I have an unhappy buyer who feels used and abused!
