Will you get your earnest money deposit back? If you’re buying and selling at the same time, can you move into your next home early? Can you ask for personal property? Here are the answers to these three common homebuyer questions:
1. Will I get my earnest money back (if the purchase agreement is canceled)?
Many people are under the assumption that once they write an earnest money check, the seller gets to keep it if the buyer cancels the purchase agreement. In reality, earnest money is a deposit that goes along with a fully-executed purchase agreement, and it’s refundable to the buyer in a number of situations.
We’ll cover this topic more in depth in an upcoming video, but in a nutshell, the buyer will get their earnest money back under the following circumstances:
- They cancel the purchase agreement within the inspection contingency timeline
- They cancel the purchase agreement within the 10-day right of rescission period for CIC document review
- Their loan falls apart
2. If I’m buying and selling at the same time, can I move into my next home early?
In this case, the answer depends. You certainly can, but that’s something you need to negotiate with the other party. There are pros and cons to moving into your next home early. Since you’re moving into a home you don’t own, you have to consider the insurance factor. Also, what if the transaction doesn’t close? What if some of your belongings get damaged while you’re storing them in the property? Insurance for theft, damage or loss is important.
3. Can I ask for personal property?
Yes. Typically, kitchen appliances are included in every transaction. With written agreement between both parties, other items maybe included as well. Examples might include a bench that fits perfectly within a certain area, or a decorative piece that works well in particular space. Other commonly requested items include pool tables and swing sets. As long as the seller consents in the purchase agreement to leave these items, they can remain with the property.
We take pride in writing clear and precise personal property agreements for our clients that are separate from the purchase agreement. To clarify, sometimes this property is purchased separately outside of the closing, so that’s another conversation you’ll need to have with the seller.
If you have any more questions about the home buying process or have any other real estate needs we can take care of, don’t hesitate to reach out to us. We’d love to help you.