Who keeps the deposit if the real estate transaction is cancelled?

The attorneys at the Florida Realtors Hotline receive over 60,000 calls a year, and the number one question they receive is about the escrow deposit. Who keeps the deposit if the buyer or seller cancels the contract?

The answer unfortunately is not simple... The true answer is; it depends on what the contract says!

The “right to cancel” is usually found in several areas of the standard contract for sale and purchase realtors use, allowing the buyer to cancel (generally without a penalty) based on Inspection findings, Financing contingencies, HOA clauses, or title defects. However, all these have deadlines or conditions within the contract that must be met in order to allow the buyer to keep their deposit.

Since the contract dictates who keeps the deposit it is important to read the contract and understand the clauses in it.

Work with a realtor who will protect you and your rights. One who is experienced and understands the different terms of the agreement. Although a realtor cannot replace an attorney, and is not allowed to offer legal advice, we can answer your questions and explain the terms in the contract to make you aware of any issues in it. Or put you in contact with an experienced attorney if you need further help.

Don’t risk waiving your rights as a seller or buyer by working without the help of a professional, or sign a document you do not understand. Also do not try to draft your own contract or modify the clauses found already in the contract. If the transaction goes into a dispute you could end up in serious trouble.

If you’re looking to buy or sell a home call me and I will work to protect your rights throughout the transaction to procure a successful closing.

Maria Teresa Villalobos Cell. 786-285-5855; info@bestmiamihomes.net or visit me at www.BrickellCondosInfo.com