Real Estate Journal

Is non-refundable earnest money good or bad? Yo will say, it is terrific if you are a seller. But what if you are a buyer? It’s far less exciting if you are a buyer.

Sometimes, problems arise from the use of non-refundable earnest mone.

For instance, what if the home inspection shows significant problens that the seller did not disclose earlier? What if lender cannot fund the money anymore? What if the buyer can no longer qualify for financing or loses his or her job? What if the transaction fails by the specified date? What if the other party is injured or dies, or gets a divorce?

Well, these things happen!

So, it is up to the buyer and the seller to negotiate, if indeed the non-refundable money will still be considered as such.