QUESTION
Can I be held responsible if company made a mistake and gave me back the earnest money?
Asked on Dec 04th, 2013 on Foreclosures - California
More details to this question:
I was going to purchase a home. I decided not to buy it. The title company sent me back the check for earnest money. Now they want it back. Can I be held responsible for their error?
2 ANSWERS
If the contract says that you forfeit the earnest money if you cancel the purchase, then the seller can sue you for breach of contract to recover the money. You cannot legally take advantage of an error.
Answered on Dec 13th, 2013 at 5:45 PM
1 Award
You signed a contract which states that the other party is entitled to the earnest money amount if you back out. Yes, they can sue you to recover that money and they will win the suit. You should read the contract, it probably also provides that they are entitled to attorney fees as well so if you do not pay it back voluntarily, when they sue you, they will also ask for you to pay all of their attorney fees and court costs.
Answered on Dec 09th, 2013 at 6:07 PM