Superior School of Real Estate. As I teach across the state of North Carolina, I continue to hear remarks from licensees about the issues regarding the proper handling of earnest money deposits according to NC Law. Alternatively, if a Broker is holding the Earnest Money, the Broker may deposit the disputed monies with the appropriate clerk of court in accordance with the provisions of N.

The note from provision 4 a states what happens when earnest money is in dispute and it also references the NC General Statute 93A which allows the money to be deposited with the appropriate clerk of court in the county where the property is located after the parties receive a 90 day notice. The main concern of licensees is that sellers disagree on the return of the earnest money deposit even though a condition or contingency is clearly stated in the Offer To Purchase and Contract and that the stated condition or contingency is not performed by the party after using their best efforts.

Buyer used their best efforts to obtain financing with three different lenders. All three lenders did not give the buyer loan approval. The buyers want their earnest money returned because they were not able to obtain financing.

Alternative One, in the NCAR Offer To Purchase and Contract, was agreed to by all parties. The buyer decided to terminate the contract, as stated in Alternative One, and requested the return of the earnest money deposit.

Understanding Due Diligence and Earnest Money on the NC Offer to Purchase and Contract

The contract states that the property is to appraise for the sales price. In addition to the contract stating an appraisal contingency, the lender will not give the buyer a loan because of the appraisal.

Due Diligence and Earnest Money in North Carolina - Hunter Rowe

The buyers request the return of the earnest money. The seller states that the appraiser was not competent to appraise the property and will not release the earnest money.

Earnest Money Dispute & | Legal Advice

I welcome your comments, ideas, and suggestions regarding this e-mail and future e-mail topics. Please e-mail me at bgallagher superiorschoolnc.

I look forward to seeing you in class very soon. You must be logged in to post a comment. Handling Disputed Earnest Money Deposits According to NC Law By Superior School September 14, 0. Our next Hot Topic E-Mail will discuss: Is an earnest money deposit required in order for an offer to purchase and contract to be valid and enforceable in North Carolina?

What have other states done to relieve or avoid the earnest money deposit dispute conflict between buyers and sellers? Posted in Hot Topics , Uncategorized.

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