I am about to purchase a property “as is” and wanted to know the ramifications of putting down earnest money. I have not received a disclosure from the Seller yet, although, he told me verbally a few things that need repaired. Of course, I am going to have it thoroughly inspected. My question is once I submit the offer with the earnest money deposit and later (after the inspection, mainly) find out there are more things wrong than I’m willing to fix, can I get ALL of my EMD back? Is there a specific clause I should put in the contract to cover me?
Most contracts have a clause allowing you out of the deal if the inspection turns up major items. You can also word any contract to simply state you can back out of the deal and get your ernest money back just for the hell of it!! Not those exact words. :biggrin
May want to check out your state’s local REALTOR/MLS paperwork. Likely it already has the correct clauses in it to protect you.
You can still put in a dollar amount of repairs that you aren’t willing to go over in fixing. If repairs cost more, you can back out of the deal (with your money).
Of course, it goes without saying, that if the EMD is truly an issue, then you actually want an escrow agent to hold it and not the seller.