When Can You Keep a Buyer’s Earnest Money Deposit?

Published On: March 27, 2022|Categories: Blog, Selling|Tags: Earnest Money, Selling Your Home, Tips|

If you’re like many sellers, you know that when a buyer gives over an earnest money deposit, they’re very serious about purchasing your home. That’s because if a buyer breaks their end of the deal, the seller typically gets to keep the earnest money deposit. Because earnest money deposits typically range between 2 and 5 percent of the home’s total sales price, you’re talking about a significant amount of money. Though it’s not always the case that the seller gets to keep the money, here are some instances in which it’s possible.

When Can You Keep a Buyer’s Earnest Money Deposit?

First things first: Why would a seller want to keep a buyer’s earnest money deposit? It’s primarily about inconvenience. When you accept an offer, you take your home off the market. That means other qualified buyers don’t even have a chance at it. After you’ve taken your home off the market in anticipation of one particular buyer purchasing it, if the deal falls through, you have to relist the home and start from scratch.

Generally, real estate contracts are filled with contingencies. Contingencies are conditions that must be met in order for the deal to go through. If you fail to uphold your end of the bargain as the seller, the buyer can walk away from the deal with their earnest money intact. However, if it’s the buyer who fails to hold up their end of the bargain, you may be entitled to keep their earnest money deposit.

For example, if a buyer just gets cold feet and decides not to purchase your home after you’ve already accepted their offer, there’s a good chance that you can keep the earnest money deposit. Likewise, if your contract doesn’t include contingencies such as those related to the home’s condition, but the buyer wants to cancel the deal anyway, you may be entitled to keep their earnest money deposit.

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Common Failed Contingencies

real estate agents build contingencies into purchase contracts to protect their own clients. Your agent will build contingencies into your contract that protect you, and your buyer’s agent will do the same. These are the four most common reasons that buyers can walk away with their earnest money deposits intact:

If a buyer’s financing falls through, provided that there is a financing contingency in the purchase contract, they can walk away with their earnest money. You can’t force them to purchase the home if they don’t have the money to do so.
Problems with the property. If there’s an inspection contingency built into your contract, and the home inspector that the buyer hires discovers problems, the buyer can usually walk away with their earnest money. However, many buyers simply use inspection reports to negotiate with sellers.
Title search problems. Usually, a buyer can get their earnest money back if a title search shows a lien or other issues with the ownership of a property.
Appraisal problems. If your home appraises for less than your asking price, buyers usually get to walk away with their earnest money intact. However, sometimes buyers negotiate instead.

4827 W San Miguel is a 4-bedroom, 3-bathroom Hawaiian ranch style home situated on a wide and deep .41-acre (18,100 sq ft) lot with 130 feet of canal waterfront. Overtime home expansions and remodeling have contributed to years of family fun that include kayaking, fishing, and boating on Cedar Channel and Old Tampa Bay. The home interior features a foyer, dining room, living room and kitchen combination, and a cozy and inviting family room with an office space. The bedrooms are in a split plan with three of them along a hallway off the living room and with the primary suite off the other side of the living room (See the attached floorplan). French doors from the primary bedroom, living room and family room open to the outdoor living and dining room, kitchen, and the Lang Lazy L-shaped pool and deck area. In addition, there is a fishing dock, a boat lift dock, and a davit. This home truly embodies all the elements of a casual Florida lifestyle. Living on this expansive canal front lot there is always a sense of adventure and exploration. So, although this home is quite livable, some would prefer to see it as a tear down and would make their own mark on this unique, expansive, and quite private South Tampa property.

This South Tampa property is located near the Westshore business district, International Mall, Interstate roadways to St. Petersburg and Clearwater, minutes to Tampa International Airport, nearby boutiques and entertainment venues.

$2,199,999 Active

4827 W San Miguel Street Tampa, Florida

4 Beds 2 Baths 2,496 SqFt 0.310 Acres

Just hitting the market, property for sale at 1901 Astor Avenue, Tampa, Fl. 33612. Wonderfully located in the Forest Hills/Lake Magdalene area. This 3 bedroom/3 bath home has been meticulously maintained. It boasts 2464 sq. ft. of living area plus an over-sized 2 car garage with shelving, a large under roof lanai with removable vinyl windows and beautiful limestone tile flooring. The home has an oversized salt-water pool with a large backyard overlooking a lake. Updates include a new roof (March 2023), new A/C (April 2023), new water heater (Feb 2019), and exterior paint (2024), Both the Master Bath and Hall bath have been renovated with quartz countertops, sinks, lighting and paint. The Master Bath shower has also been completely redone. The spacious kitchen has been renovated with cabinetry, granite countertops and a tumbled marble backsplash. The laundry and office area has ample cabinets and shelves. The Family Room has a large masonry wood burning fireplace for those chilly nights. The game room has a kitchenette with a gas grill. This room opens to the pool for easy access to the 3 piece bathroom. The game room could easily be converted to a mother-in-law suite or a fourth bedroom. There is plenty of room in the large back yard for the little ones and pets to play and run. A storage shed with lots of room for your riding mower and lawn equipment. There is an extra storage room on the east side of the home. The home sits on a large lake front lot with plenty of room to store a boat, recreational vehicle or other toys.
Included with the home are the dishwasher, microwave, range, all shutters and blinds. The pool table is included with the home as well.

$659,000 Active

1901 Astor Avenue Tampa, Florida

3 Beds 3 Baths 2,464 SqFt 0.280 Acres

Style and sophistication abound in this Fully Remodeled Countryway Pool Home, Showcasing just under 3000 sq/ft, 4 Bedrooms, 3 Baths, and a 3 Car Garage (3rd bay is converted to workshop but can easily be converted back). Nestled on a Private, Lushly Landscaped lot in the Estates of Countryway, this Spacious Home shows light and bright, with Soaring Ceilings. Offering a 3-way split floor plan, this Move-in ready Home features Neutral Tile Flooring throughout and Many Upgrades which include Crown Molding, Custom Cabinetry Throughout, tons of cabinetry and shelving for storage in Garage, as well as a Garden Shed. Generous Formal Living and Dining room make entertaining a delight with Built-In Bar in Dining Room and Pocketing Sliders leading to Pool Area. The heart of the Home is the Kitchen - A Chefs Dream Kitchen, highlighting Custom soft-close Thomasville cabinetry with Ample Pull-Out Drawers and Granite countertops, Undermount Lighting, a Prep Island, Kitchen-Aid Stainless Steel Appliances, Induction Glass Top Cooktop, French Style fridge, and Built-in Oven and Convection Microwave. Relax in the Family Room in front of the Cozy Fireplace on those cooler Florida nights with Large Pocketing Sliders that open to the covered lanai area, finished off with a Bose Surround Sound System that services both family room and lanai. Step into your own Spa-like Retreat within the Primary Suite, where Tranquility meets Elegance - and Enjoy Views of the Pool. Relax in the Spa-Like Bathroom, featuring a Large Walk-in closet, Garden Tub & Step-in Shower. 2nd and 3rd Bedrooms off of Kitchen feature an adjacent Remodeled Full Bath with Tub/Shower and Vanity Sink. An Additional bedroom off Family Room, at the back of the Home, with adjacent Updated Bath featuring Access to the Pool, a Spacious Vanity & Step-in Shower. This Home embraces Outdoor Living with an Expansive outdoor Screened-In Pavered Patio with Sparkling Pool. Relax Poolside or in the Custom Grilling Area with a cool beverage after a long day. Super location with easy access to Tampa Airport, fabulous beaches, shopping, restaurants, Golf courses, County parks and A rated Schools. The Countryway Community, Surrounding the Beautiful Countryway Golf Course, has a LOW HOA, NO CDD, and offers many amenities such as tennis courts, pickeball courts, a playground, fitness area, dog park, basketball courts, a recreation area, pavilion rental and fields for sports. **NEW ROOF** and New Screens on Enclosure. Meticulously Maintained - Bring your Most Discerning Buyers.

$749,900 Active

11203 Bloomington Drive Tampa, Florida

4 Beds 3 Baths 2,518 SqFt 0.180 Acres

Turn your vision of luxurious, modern living into reality in this beautiful custom pool home in Tampa Trails, a new gated neighborhood in Upper Tampa Bay! No expense was spared in putting style, comfort, and function in mind to offer the ideal indoor-outdoor lifestyle you deserve. Solid concrete all the way up including the roof top patio. Admire the abundant natural light sweeping through expansive windows to accentuate the crisp, white tones as marble flooring gleams underfoot. Walls of glass frame leafy panoramas as you entertain or unwind in the living room with soaring, double-height ceilings overhead, and floating staircase to upper level. Stately kitchen turns up the notch on hosting dinner get-togethers. Show off your skills and enjoy an oven-to-table cooking experience with an oversized island to seat visitors as chic pendant lighting glows above. Every bedroom comes adjoined by tastefully tiled baths and treats you to overlooking nature vistas. Among it all, the primary suite delivers you utmost amenity with its opulent ensuite featuring twin vanities and an enormous shower and private balcony. Look forward to bringing the party to the multiple outdoor gathering areas that can accommodate casual alfresco gatherings. Surprise your lucky guests by taking them to the rooftop deck to soak up the sun or barbecue during leisurely weekends or relax by the pool. There's so much more to discover, so what are you waiting for? Make your homeownership dreams come true by coming on a tour today! NO CDD FEE! Great rated schools. 5 mn to sun coast pkwy, 15 minutes to the airport, 20 mn to downtown, 1 1/2 mile to Citrus Mall and 15 to International Mall, the location couldn't get any better!

$1,450,000 Active

7608 Antilla Street Tampa, Florida

4 Beds 4 Baths 3,003 SqFt 0.130 Acres

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