Location: Texas
Submitted 05/29/12 05:10 PM

Q. if i had a contract on a house and someone outbid me after i put my earnest money down is that legal

 

Answer #1
Submitted 05/29/12 05:25 PM
Brenda Mullen-ABR, e-Pro-210-807-0819 Selling San Antonio TX Area Real Estate (RE/MAX Access): Agent in Schertz, TX Brenda Mullen-ABR, e-Pro-210-807-0819 Selling San Antonio TX Area Real Estate (RE/MAX Access)
Agent
Schertz, TX

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A.

I don't know if I would call that illegal.  The key thing is to know whether the seller accepted your offer.  If they did, they and you are bound by the contract terms.  Putting your earnest money down doesn't necessariy mean you have an agreed upon contract.

That being said, if you didn't have an accepted contract from the seller, you should be able to get your earnest money back.  

Answer #2
Submitted 05/29/12 07:07 PM
Juli Vosmik - Scottsdale/Cave Creek, AZ real estate 480-710-0739, AZ license: SA582226000 (Dominion Real Estate Partners, LLC, Scottsdale, AZ): Agent in Scottsdale, AZ Juli Vosmik - Scottsdale/Cave Creek, AZ real estate 480-710-0739, AZ license: SA582226000 (Dominion Real Estate Partners, LLC, Scottsdale, AZ)
Agent
Scottsdale, AZ

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A.

Like Brenda said - if your contract has been ACCEPTED, then all other offers would be in "back up" position should something cause you or the seller to cancel your signed contract - unacceptable inspection, not being able to meet the financing contingency are two which come to mind.  Just putting earnest money down and signing a contract on YOUR side, doesn't make a firm contract.  

Answer #3
Submitted 06/01/12 08:30 AM
Donna Harris, REALTOR®, CDPE & ASP - Hill Country Austin Lakeway Homes, Donna Harris, REALTOR®, CDPE & ASP - Hill Country (Regent Property Group): Agent in Austin, TX Donna Harris, REALTOR®, CDPE & ASP - Hill Country Austin Lakeway Homes, Donna Harris, REALTOR®, CDPE & ASP - Hill Country (Regent Property Group)
Agent
Austin, TX

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A.

In addition to the above responses, if your contract is contingent upon the sale of your home, you more than likely have an addendum which allows the seller to accept another contract and kick your contract out if you don't remove the contingency. In that case, yes, another contract can kick yours out.
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